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This is really asking about planning and operational variances.
You will know from my free lectures that variances from budget occur either because they have changed their plans (e.g. decided to buy some different material) i.e. planning variances, or because of operational issues (e.g. the manager has wasted some material and used more than he should have) i.e. operational issues.
If budgets are being used to measure how well the managers perform then we should measure them on operational issues and so should revise the budgets for changes in plans, but not revise them for things going wrong operationaly.
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