Which of the following is not a general rule to follow in a variance investigation?
A)Adjust budgeted amounts to agree with actual amounts.
B)Investigate all significant variances, whether favorable or unfavorable.
C)Examine trends.
D)Consider the total picture.
E)All of the above are general rules to follow.

Question

Quizplus · Accepted Answer

Adjusting budgeted amounts to agree with actual amounts is not a general rule to follow in a variance investigation as it would simply hide the variance and not help in understanding the reasons behind it. The other options listed (B, C, D) are all general rules to follow in a variance investigation.

Which of the Following Is Not a General Rule to Follow