The manager of a firm is happy to receive a report that shows a favorable total materials

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The manager of a firm is happy to receive a report that shows a favorable total materials variance of $75. The manager decides that no more action is needed since the total variance is such an insignificant amount for an operation that has a total direct materials cost of over $100,000. Do you agree?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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