Variance analysis is used as a tool to evaluate performance. Consider your professional experiences as well as your review of the Required and/or Optional Resources and determine what type of variances might be the most alarming to see. If cost variance is high, is that an indication of a priority for a firm? Provide an instance in which favorable variances are just as important to understand as unfavorable variances. What type of inventory control considerations do you think are occurring with the use of variance analysis?
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