Question: Chapter Nine Discussion Question What is the difference between a flexible budget and a planning (also called static) budget? What are each used for? What

Chapter Nine Discussion Question

What is the difference between a flexible budget and a planning (also called static) budget? What are each used for?

What is the purpose of using standards to determine budget variances for direct materials, direct labor, & overhead? We can determine variances without using standards, so why would a company bother with standards? BTW, last time I checked, 70% of manufacturing companies utilized standard costing. There must be a good reason for them to do so.

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