In the control phase of budgeting it is not necessary to:
A) investigate all variances.
B) decide on management action.
C) provide timely information to management.
D) compare actual performance with budget estimates.

Question

Quizplus · Accepted Answer

While investigating variances is an important part of the control phase, it may not be necessary to investigate every single variance. Some variances may be small and not require further investigation or action. However, it is necessary to decide on management action based on significant variances, provide timely information to management, and compare actual performance with budget estimates.

In the Control Phase of Budgeting It Is Not Necessary