Final answer:
Managers can control operations within a variable budget by decreasing variable costs option (b), like labor and raw materials, and by monitoring and controlling production levels to align output with demand.
Step-by-step explanation:
To control operations within a variable budget environment, a manager can adopt several strategies. Two ways a manager can assist in controlling operations for a variable budget are by decreasing variable costs and by monitoring and controlling production levels.
Decreasing variable costs, such as labor and raw materials, directly aligns with the output levels and could entail optimizing labor use or sourcing cheaper materials without compromising quality. Monitoring and controlling production levels ensure that production is aligned with demand to avoid overproduction and excess variable costs.
It is not advisable for a manager to increase fixed costs or ignore changes in market conditions, as these actions do not contribute to effectively managing a variable budget. Fixed costs, such as rent on a factory, are expenditures that do not change with the level of production and should be kept at an optimal level.
Ignoring market conditions means failing to respond to factors that can influence demand and variable costs, which can also result in inefficiencies.