Describe in your own words how manufacturing companies utilize forecasting tools to develop a master budget. Provide a real-world example (with sources cited) of this production budgeting in action. This may be related to a company implementing a new budgeting tool, changing its methodology, dealing with a change in its supply chain, etc. (note there are plenty of business news articles on this topic).
Favorable standard cost variances are always good and unfavorable variances are always bad.
Discuss this statement. Do you agree or disagree? Provide an example to support your position.