The variances that should be investigated by management include:
A)only unfavorable variances
B)only favorable variances
C)all variances, both favorable and unfavorable
D)both favorable and unfavorable variances considered significant in amount for the company

Question

Quizplus · Accepted Answer

Management should investigate both favorable and unfavorable variances, but only if they are considered significant in amount for the company. While all variances could be investigated, it may not be practical or necessary to investigate every single variance. Therefore, the best choice is to investigate significant variances, whether they are favorable or unfavorable.

The Variances That Should Be Investigated by Management Include