When considering whether to investigate a variance, managers should consider all of the following except the variance's:
A) size.
B) pattern of recurrence.
C) trends over time.
D) nature, namely, whether it is favorable or unfavorable.
E) controllability.

Question

Quizplus · Accepted Answer

The nature of the variance, specifically whether it is favorable or unfavorable, should not deter managers from investigating it. Both favorable and unfavorable variances can provide valuable insights into business operations and performance.

When Considering Whether to Investigate a Variance, Managers Should Consider