Tool(s)that managers can use to decide when to investigate variances include which of the following?
A)Use of both tolerance limits and decision models.
B)Use of tolerance limits only.
C)Decision models only.
D)None of the above.

Question

Quizplus · Accepted Answer

Managers can use a combination of tolerance limits and decision models to determine when to investigate variances. Tolerance limits set a range within which variances are deemed acceptable, while decision models help managers make informed decisions about whether to take action based on factors such as the magnitude of the variance and its impact on performance. Using both of these tools together can help managers make more informed decisions about when to take action to address variances.

Tool(s)that Managers Can Use to Decide When to Investigate Variances