If the conclusion from a variance analysis is that the benchmark is inappropriate then the correct management action is to:
A) Write off the variance against cost of goods sold
B) Do nothing
C) Revise benchmark
D) Replace the manager who set the benchmark

Question

Quizplus · Accepted Answer

Revising the benchmark is the appropriate action if it is determined to be inappropriate, as it ensures future analyses are based on accurate and relevant standards.

If the Conclusion from a Variance Analysis Is That the Benchmark