For decisions that affect setting sales prices, consider the following decision focuses. State the appropriate costing method and the reason for your answer. Decision Appropriate Focus Costing Method Short run Long run 1. Cost variance 2. Efficiency variance measures how well the business uses its materials or human resources the difference between actual results and expected results in the flexible budget for the actual units sold the difference between actual results and the expected results in the static budget measures how well the business keeps unit material and labor costs within standards the difference between the expected results in the Silla 3. Flexible budget variance 4. Sales volume variance 5. Static budget variance