A production manager is evaluated based on the quantity of direct materials used in production.If the production line actually uses materials to produce 50,000 units when the master budget shows materials needed for 44,000 units,the manager's evaluation should be based on a flexible budget.

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The use of a flexible budget can account for changes in actual production levels, allowing for a more accurate evaluation of the production manager's performance based on actual usage of direct materials.

A Production Manager Is Evaluated Based on the Quantity of Direct