The importance of understanding the root cause of an outlier is to
A) identify potentially fraudulent activity.
B) help management understand favorable variances.
C) help management understand unfavorable variances.
D) All of the items listed.

Question

Quizplus · Accepted Answer

Understanding the root cause of an outlier is crucial for identifying potentially fraudulent activity, helping management understand both favorable and unfavorable variances, and making informed decisions.

The Importance of Understanding the Root Cause of an Outlier