Variances indicate
A)the cause of the variance.
B)who is responsible for the variance.
C)that actual performance is not going according to plan.
D)when the variance should be investigated.

Question

Quizplus · Accepted Answer

Variances indicate that actual performance is not going according to plan. Variances are the difference between actual results and planned or expected results. They can be either positive or negative, but in either case, they indicate that something has gone off track from the planned course of action. Therefore, variances should be investigated to identify the cause and take corrective action to bring actual performance in line with the plan.

Variances Indicate