Which of the following is a factor that managers might use in deciding whether to investigate a variance?
A)Materiality
B)The existence of a trend
C)Whether combining several accounts with large offsetting variances results in a small variance
D)All of these answer choices are correct

Question

Quizplus · Accepted Answer

Managers may use any or all of these factors in deciding whether to investigate a variance. Materiality helps determine the significance of the variance, the existence of a trend helps identify a potential problem, and combining several accounts with large offsetting variances may result in a small variance that is not worth investigating.

Which of the Following Is a Factor That Managers Might