Based on the variances shown on responsibility performance reports, management must take corrective action on all variances, including favorable, unfavorable, controllable, and uncontrollable variances.

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Management typically focuses on significant variances, especially those that are unfavorable and controllable, as these indicate areas where performance can be improved. Not all variances require corrective action, especially if they are minor, favorable, or result from factors beyond management's control.

Based on the Variances Shown on Responsibility Performance Reports, Management