A favourable variance that is significant in a cost report
A)is a positive result for a manager.
B)is a negative result for a manager.
C)can be ignored especially if it is a minor amount.
D)should be investigated along with any negative variances.

Question

Quizplus · Accepted Answer

A significant favourable variance should be investigated to understand the reasons behind it, as it may indicate areas of efficiency or errors in budgeting.

A Favourable Variance That Is Significant in a Cost Report