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Which of the following statements is FALSE in relation to variance analysis in non-manufacturing companies?

a. When a merchandising company is forced to close stores, it will likely result in unfavorable fixed-cost variances.
b. Most overhead costs in the service sector are variable.
c. Few overhead costs can be traced to output measures in service companies in a cost-effective way.
d. Both financial and non-financial measures are used to evaluate the performance of managers.

1 Answer

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Answer: All of the above are correct statements

Explanation: none of the above are false

so...

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