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1. How can a flexible budget help managers control costs?
A flexible budget can help managers control costs by showing favorable and unfavorable variances within the planning of the budget.
2. What is an unfavorable variance? How does it relate to overall profit?
Unfavorable variances generally occur when actual cost exceeds standard cost. This often alerts managers that profits will be less than expected.
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I am taking finance class. Our books is John C. Hull 2nd edition Risk Management and Financial Institutions. Our HW are from this book. I have four questions I need help with.
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