When analyzing period end variance reports, if a variance amount is small the manager should
A)consider the variance within normal terms and ignore it for that period.
B)combine all such small variances and if they show a larger variance, investigate them then.
C)consider investigating the variance as there may be undetected swings in the intervening period that require investigation.
D)focus his or her attention on more material variances.

Question

Quizplus · Accepted Answer

The manager should focus his or her attention on more material variances as they are likely to have a larger impact on overall results. Small variances may be within normal terms and not require further investigation.

When Analyzing Period End Variance Reports, If a Variance Amount