Causes of random variances are beyond the control of management, and are most often found in (or are associated with):
A) Fixed costs.
B) Goods or services exchanged in open markets.
C) Wages and salaries.
D) Depreciation charges.
E) Specialized industries.

Question

Quizplus · Accepted Answer

Random variances are typically associated with goods or services exchanged in open markets because prices of these goods or services can be influenced by external factors such as supply and demand, economic conditions, and competitor actions. Fixed costs, wages and salaries, and depreciation charges are more likely to result in predictable variances that can be managed by the organization. Specialized industries may also have unique factors that contribute to variances, but this is not necessarily always the case.

Causes of Random Variances Are Beyond the Control of Management