Which of the following factors is not usually important when deciding whether to investigate a variance?
A) Magnitude of the variance.
B) Trend of the variance over time.
C) Whether the variance is favorable or unfavorable.
D) Cost of investigating the variance.
E) Likelihood that the variance will recur in the future.

Question

Quizplus · Accepted Answer

Whether the variance is favorable or unfavorable is not a relevant factor in deciding whether to investigate a variance as both types of variances may indicate potential issues or errors. The other factors listed - magnitude, trend, cost, and likelihood of recurrence - are all important in determining if an investigation is necessary.

Which of the Following Factors Is Not Usually Important When