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  After reading this chapter, you should be able to:

  LO 1   Use budgets for performance evaluation.

  LO 2   Develop and use flexible budgets.

  LO 3   Compute and interpret the sales activity variance.

  LO 4   Prepare and use a profit variance analysis.

  LO 5   Compute and use variable cost variances.

  LO 6   Compute and use fixed cost variances.

  LO 7   (Appendix) Understand how to record costs in a standard costing system.