You are on the right track with this one but just to clarify a little the variance analysis can indicate if our costing system is accurate and reliable. The lower the variances the more accurate our systems are likely to be. Analysis of the variances also help to identify which areas of the costing system are working well and which are not. You should add a little more explanation to your answer. The question isBriefly discuss the relationship between variance analysis and costing system integrity
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