Final answer:
The statement is false; an unfavorable materials cost variance does not automatically mean the production manager should be reprimanded. The causes of the variance must be analyzed to determine the appropriate action.
Step-by-step explanation:
The statement 'An unfavorable materials cost flexible budget variance indicates that the production manager should be reprimanded' is false. An unfavorable variance indicates that the actual costs were higher than the budgeted costs, but it doesn't necessarily mean that the production manager should be reprimanded. Various factors, including price changes, inefficient use of materials, or incorrect budget estimates, can contribute to unfavorable variances. Before considering disciplinary action, it is essential to analyze the reasons behind the variance. Factors beyond the control of the production manager, such as market-driven price increases, may be responsible, in which case reprimand would be inappropriate.
The statement is false. An unfavorable materials cost flexible budget variance does not necessarily indicate that the production manager should be reprimanded. The materials cost flexible budget variance compares the actual cost of materials used in production to the standard cost of materials allowed for the level of production achieved.