Kaplan Chapter 7 Chipotle Flexible Budgets and Variances Case Discussion

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Kaplan Chapter 7 Chipotle Flexible Budgets and Variances Case Discussion

Discussion Topic: Flexible Budgets and Variances Read Chapter 7 Concepts in Action, “Can Chipotle Wrap Up Its Materials-Cost Variances Increases?”

  • Why are standards costs used in variance analysis?
  • How does a flexible budget differ from a static budget?
  • What steps did Chipotle take to reduce its material and labor variances?

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