Which of the following factors should not be considered when deciding whether to investigate a variance?
A)Absolute or relative magnitude of the variance.
B)Trend or pattern of the variance over time.
C)Chance that an "out-of-control" situation can be corrected.
D)Cost of investigating the underlying production process.
E)Whether the variance is favorable or unfavorable.

Question

Quizplus · Accepted Answer

Whether the variance is favorable or unfavorable is not a relevant factor when deciding whether to investigate a variance. The focus should be on identifying and understanding the underlying cause of the variance and taking appropriate corrective action regardless of whether it is favorable or unfavorable.

Which of the Following Factors Should Not Be Considered When