In reporting variances
A) promptness is relatively unimportant.
B) management normally investigates all variances.
C) the reports should facilitate management by exception.
D) the reports are not departmentalized.

Question

Quizplus · Accepted Answer

The reports should facilitate management by exception, meaning that only significant variances need to be investigated and reported, while small or insignificant variances can be ignored. Promptness is important to ensure timely decision making, management may not investigate all variances if they are not significant enough to affect the overall performance, and variances are often departmentalized to help identify areas of responsibility for the variance.

In Reporting Variances