A favourable variance should be ignored by management.

Name: A favourable variance should be ignored by management.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A favourable variance means that actual results are better than planned results. It may indicate an opportunity to improve processes or performance, and therefore should be investigated and acted upon by management. Ignoring favourable variances can lead to missed opportunities for improvement and lower performance in the future.

A Favourable Variance Should Be Ignored by Management