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In several questions in BPP revision kit they do not flex the fixed costs. As a result the 3 variances do not add up to total cost variance. Which way should we calculate the fixed variances? Both total cost and individual (volume, expenditure). Should we flex the fixed costs?
For example the question 38 in bpp revision kit. Why they don’t flex the fixed costs?
ThanksI don’t have the BPP books so I can’t refer specifically, but I have already asked the question to the tutor on this topic which may help:
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