Which of the following statements is TRUE about performance reporting?
A) Reports should focus on whom to blame for unfavorable variances.
B) Managers should not be held accountable for uncontrollable variances.
C) Only unfavorable variances need to be explained.
D) Every variance, regardless of magnitude, must be investigated.

Question

Quizplus · Accepted Answer

Managers should be held accountable for variances within their control, but it's unreasonable and counterproductive to hold them accountable for factors beyond their control. Performance reporting should aim to identify areas for improvement and facilitate decision-making, not to assign blame for uncontrollable circumstances.

Which of the Following Statements Is TRUE About Performance Reporting