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| After performing a thorough study of Michigan Company’s operations, an independent consultant determined that the firm’s labor standards were probably too tight. Which one of the following facts would be inconsistent with the consultant’s conclusion? A. A review of performance reports revealed the presence of many unfavorable efficiency variances. B. Michigan’s budgeting process was well-defined and based on a bottom-up philosophy. C. Management noted that minimal incentive bonuses have been paid in recent periods. D. Production supervisors found several significant fluctuations in manufacturing volume, with short-term increases on output being followed by rapid, sustained declines. |