What should the decision rule be to determine what budget variances to investigate?
A) Investigate unfavorable variances only.
B) Investigate favorable variances only.
C) Investigate if the variance is significant.
D)Investigate all variances.

Question

Quizplus · Accepted Answer

Investigating every variance, whether favorable or unfavorable, can be time-consuming and may not be necessary. Therefore, only investigating significant variances can be an effective way to identify potential issues that require management's attention.

What Should the Decision Rule Be to Determine What Budget