The absolute size of a variance is more important than the relative size when trying to decide what variances to investigate.

Question

Quizplus · Accepted Answer

The relative size of a variance (how it compares to budgeted amounts or to variances in other periods) is often more important than the absolute size, as it provides context and helps prioritize issues based on their potential impact on the business.

The Absolute Size of a Variance Is More Important Than