Cost variances should be investigated ________.
A) when they are considered within the "in-control" range as determined by management
B) when the variance is more than a certain percentage of budgeted costs, as determined by management
C) even though the cost of investigation exceeds the benefit as determined by management
D) when the variance is less than a certain percentage of budgeted costs, as determined by management

Question

Quizplus · Accepted Answer

Cost variances should be investigated when they exceed a certain threshold or percentage of budgeted costs, as determined by management. This approach helps in focusing on significant variances that could impact the financial performance, while avoiding the inefficiency of investigating minor variances.

Cost Variances Should Be Investigated ________