There are several reasons why actual results differ from standards. Which of the following does not represent a reason why a variance might occur?
A) Inaccurate information from the accounting system.
B) Increasing the accuracy of a variance report by decreasing its timeliness.
C) Standards which do not reflect the current economic conditions.
D) Operating conditions that are consistently inefficient.

Question

Quizplus · Accepted Answer

Decreasing the timeliness of a variance report to increase its accuracy does not directly cause a variance; it is more about the reporting process rather than the cause of variance itself.

There Are Several Reasons Why Actual Results Differ from Standards