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Which of the Following Variances Would Not Be Investigated by a Manager

Question 52

Multiple Choice

Which of the following variances would not be investigated by a manager following the management by exception principle?


A) A 10% favorable variance in raw materials price
B) A 10% unfavorable variance in direct labor rates
C) A 10% unfavorable variance in payroll tax expense
D) An unfavorable variance that has increased by 5% in each of the last five months

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