Troy Company budgeted $12 million for customer service costs, but actually spent only $10 million. Which of the following statements is the best course of action for management to take in this instance?
A) Management will investigate this $2 million favorable variance to ensure that the cost savings do not reflect skimping on customer service.
B) Because this $2 million variance is favorable, management does not need to investigate further.
C) Management will investigate this $2 million unfavorable variance to try to identify and correct the problem.
D) Management should not investigate every major variance, especially the unfavorable ones.
Correct Answer:
Verified
Q19: A profit center is a responsibility center
Q20: Decentralization allows top management to hire workers
Q21: Management by _ is the practice of
Q22: The security department for a department store
Q23: The human resources department for Kohl's Department
Q25: The reservations department for a car rental
Q26: The maintenance department at Continental Airlines is
Q27: The convenience store owned by a national
Q28: Pizza Hut, a division of Yum! Brands,
Q31: Information technology has made many tasks easier,but
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents