Managers investigate
A) All variances
B) All unfavorable variances
C) Variances they consider important
D) Variances that are reported in the financial statements

Question

Quizplus · Accepted Answer

Managers typically investigate the variances that they consider important, meaning that they focus on the areas that have the greatest impact on their decision-making and overall performance. They may not necessarily investigate all variances or just the unfavorable ones, as some variances may be small or insignificant. The variances that are reported in the financial statements may not always be the most relevant or meaningful for management purposes.

Managers Investigate