Identification of favorable and unfavorable variances
Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control costs. Please explain.
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Small Motors Inc, which is currently operating at full capacity, has sales of $29,000, current assets of $1,600, current liabilities of $1,200, net fixed assets of $27,500, and a 5 percent profit margin.
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