Which of the following statements is correct?
A) Random variances are typically large in amount.
B) Systematic variances are considered uncontrollable.
C) Most standard cost variances call for investigation and corrective action.
D) Random variances should typically not be investigated.
E) Most variances from ideal standards will, by definition, be favorable.

Question

Quizplus · Accepted Answer

Random variances, by their nature, are unpredictable and often stem from chance occurrences that cannot be controlled or corrected through managerial action. Investigating these variances usually does not lead to actionable insights, making it inefficient to pursue them.

Which of the Following Statements Is Correct