Zevok Company budgeted $4 million for customer service costs,but actually spent only $3 million.Which of the following statements is the BEST course of action for management to take in this instance?
A) Because this $1 million variance is favorable,management does not need to investigate further.
B) Management will investigate this $1 million favorable variance to ensure that the cost savings do not reflect skimping on customer service.
C) Management will investigate this $1 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
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