As a general rule, an investigation of a variance should be undertaken only if the
A)variance is isolated
B)anticipated benefits are greater than the expected costs.
C)variance is negative.
D)variance is positive.

Question

Quizplus · Accepted Answer

It is not necessary to investigate all variances as some may not have significant impact on the overall performance of the organization. Therefore, an investigation of a variance should only be undertaken if the anticipated benefits are greater than the expected costs. This ensures that time and resources are utilized effectively and efficiently in dealing with important variances that could improve the organization's performance.

As a General Rule, an Investigation of a Variance Should