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True A volume variance occurs when the company operates at a different capacity level than was expected. False A traditional budget provides the best format for preparing a budget performance report. False Price and quantity variances are normally computed for materials; efficiency and rate variances are normally computed for labor; volume variances can be computed for overhead and sales. True A static budget, a traditional budget, and fixed budget all refer to the same type of budget. True A flexible budget is more meaningful when computing variances and thus is more meaningful for users such as stockholders and creditors