Which of the following statements is correct?
A) An unfavorable direct labor efficiency variance should always be attributed to the production manager.
B) A favorable direct materials price variance is always beneficial.
C) Variances should be used to raise questions and direct attention, rather than to blame.
D) An unfavorable variance is always the fault of the supervisor.

Question

Quizplus · Accepted Answer

Variances, including those related to direct labor efficiency, direct materials price, and overall performance, are tools for management to identify areas where performance deviates from standards. They are meant to prompt investigation and understanding, not to directly assign blame. This approach encourages a more constructive and analytical use of variance data to improve processes and efficiency.

Which of the Following Statements Is Correct