Which of the following statements is true of performance reporting?
A) Responsibility reports should focus on the person responsible for unfavorable variances, rather than information.
B) Managers should not be held accountable for uncontrollable variances.
C) Only unfavorable variances should be explained in the reports.
D) Every variance, regardless of magnitude, must be investigated by the managers.

Question

Quizplus · Accepted Answer

Managers should only be held accountable for variances within their control, as uncontrollable variances are outside their influence, making it unfair and unproductive to hold them responsible for such outcomes.

Which of the Following Statements Is True of Performance Reporting