A. These types of variances can indicate an effort to produce the quantities demanded followed by a reining in of costs to meet unrealistic standards. Therefore, this is consistent with the consultant’s conclusion, not inconsistent.

B. How the budget was developed and in what detail is not relevant to the standards being used within the company. Furthermore, if standards are also developed using a bottom-up philosophy, there is little chance that they will be too tight. Therefore, this is inconsistent with the consultant’s conclusion.

C. Incentive bonuses are generally based on successful performance which can be measured using standards. If bonuses are not being paid out, performance has not been what was expected and perhaps the expectations were unrealistic. Therefore, this is consistent with the consultant's conclusion, not inconsistent.

D. Many unfavorable efficiency (quantity of labor used) variances could be a sign of an unrealistic standard. Therefore, this is consistent with the consultant's conclusion, not inconsistent. If the company continually uses more hours than anticipated revisions may be necessary.