Each month, which variances should management investigate?

Question

Quizplus · Accepted Answer

Management should investigate all variances that they deem significant as it is important to understand the reasons behind the variances, whether they are favourable or unfavourable. Ignoring favourable variances could lead to missed opportunities for improvement, while ignoring unfavourable variances could lead to larger issues down the line. Therefore, investigating all variances ensures that management has a comprehensive understanding of the company's performance and can make informed decisions based on that information.

Each Month, Which Variances Should Management Investigate