How does$$ static$-$budget variance analysis mislead those assessing actual performance against pro forma performance$$ indicators?

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Part $1$

A$.$

Static budget variance can mislead those assessing actual against pro forma performance indicators. The key issue is that when production and sales volume fall below pro forma$$ amounts, an unfavourable cost variance analysis is an inevitable result of what is usually considered good news. Managers may waste valuable time investigating$$ routine$-$cost behaviour.

B$.$

Static budget variance can mislead those assessing actual against pro forma performance indicators. The key issue is that when production and sales volume exceed pro forma$$ amounts, an unfavourable cost variance analysis is an inevitable result of what is usually considered good news. Managers may waste valuable time investigating$$ routine$-$cost behaviour.

C$.$

Static budget variance can mislead those assessing actual against pro forma performance indicators. The key issue is that when production and sales volume exceed pro forma$$ amounts, a favourable cost variance analysis is an inevitable result of what is usually considered good news. Managers may waste valuable time investigating$$ routine$-$cost behaviour.