The variances that should be investigated by management include:
A)only unfavorable variances.
B)only favorable variances.
C)all variances, both favorable and unfavorable.
D)both favorable and unfavorable variances that are considered significant in amount for the company.

Question

Quizplus · Accepted Answer

Both favorable and unfavorable variances should be investigated only if they are considered significant in amount for the company as they can provide valuable insights into the effectiveness of the company's operations and help management in making informed decisions. Ignoring any significant variances can lead to missed opportunities or potential problems in the future.

The Variances That Should Be Investigated by Management Include