Which of the following is not a criterion that a company might use to determine whether or not a variance is exceptional?
A)The variance is based on a significant percentage of the standard cost.
B)The variance is unfavorable.
C)The variance is for a large dollar amount.
D)The variance is for a significant percentage of the flexible budget amount.

Question

Quizplus · Accepted Answer

Whether a variance is favorable or unfavorable does not determine whether or not it is exceptional. The other criteria listed (significant percentage of standard cost, large dollar amount, significant percentage of flexible budget amount) could all be considered in deciding if a variance is exceptional.

Which of the Following Is Not a Criterion That a Company