When investigating variable overhead variances,management needs to determine whether cost increases were controllable or if the cost standard needs to be updated.

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This statement is true. When investigating variable overhead variances, management needs to analyze the causes of cost increases to determine whether they were controllable or uncontrollable. If an increase in cost was controllable, management may need to take corrective action to prevent future cost increases. If the cost increase was uncontrollable, such as due to an unexpected increase in the price of raw materials, management may need to update the cost standard to reflect the new reality.

When Investigating Variable Overhead Variances,management Needs to Determine Whether Cost