How do managers decide which variances are important enough to investigate? I$\quad $ When the variance is unfavourable
II$\quad $When the variance is larger than a specified amount or percentage
III$\quad $When the variance trends are increasing
A) I only
B) II only
C) III only
D) II and III only

Question

Quizplus · Accepted Answer

Managers typically decide to investigate variances that are larger than a specified amount or percentage, indicating significant deviations from expected performance, and when there is an increasing trend in variances, suggesting a worsening situation that may require corrective action.

How Do Managers Decide Which Variances Are Important Enough to Investigate