It is not enough to look only at the sales-related variances to evaluate the sales strategy but also variances that are influences by the sales strategy. Variances that are influenced by the sales strategy include direct materials, direct labor, and manufacturing overhead. Beginning with the direct materials, what are the different variance relate to direct material and how are they interpreted?

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Direct material variances are typically categorized into three main types 1 Material Price Variance This variance measures the difference between the ... View the full answer