Detailed variance analyses are most common in large,complex businesses because it is impossible for managers to keep track of what occurs in specific responsibility areas.

Question

Quizplus · Accepted Answer

Detailed variance analyses are tools that help managers compare actual performance with expected performance. In large and complex businesses, there are numerous responsibility areas, and it becomes difficult for managers to monitor all of them. Detailed variance analyses help managers to identify areas that underperformed or overperformed relative to budgeted or expected performance. Thus, this statement is true.

Detailed Variance Analyses Are Most Common in Large,complex Businesses Because