If a variance analysis shows that operations are better than expected, managers should:
A) Do nothing
B) Revise standard costs to make them harder to achieve
C) Monitor quality to ensure it was maintained
D) Change the accounting records so that unrealistic expectations aren't imposed in future

Question

Quizplus · Accepted Answer

Variance analysis indicating operations are better than expected suggests efficiency, but it's important for managers to ensure that this improvement in operations hasn't come at the cost of quality. Monitoring quality ensures that the improvements are sustainable and not resulting from cutting corners.

If a Variance Analysis Shows That Operations Are Better Than