The decision rule to determine what budget variances to investigate should be to:
A)investigate unfavorable variances only.
B)investigate favorable variances only.
C)investigate if the variance is significant.
D)perform a random investigation of 10% of all variances.

Question

Quizplus · Accepted Answer

The decision rule should focus on investigating significant variances, whether favorable or unfavorable, as they may indicate important issues or opportunities for improvement.

The Decision Rule to Determine What Budget Variances to Investigate