Examining recent system of variance reporting

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Reference no: EM131477080

The Management Accountant of ABC Company has been examining the recent system of variance reporting used by the company.

He has noted that there have been several material cost increases over the past few months largely because of macro-economic factors affecting local firms.

The Management Accountant is considering stopping the calculation and analysis of material cost variances until the price volatility subsides.

Discuss the possible reasons for his intended course of action.

Reference no: EM131477080

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