If a Variance Is Favourable, It Should Be Closed Directly

question 25

True/False

If a variance is favourable, it should be closed directly to cost of sales.

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Definitions:

External Environment

All factors outside of an organization that can affect its performance, including economic, social, political, and technological influences.

Monitoring

The systematic process of tracking and evaluating progress toward achieving objectives.

Constitutional Law

The body of law that governs the rights, powers, and structure of government entities, and the rights of individuals under a country's constitution.

Labour Market

The supply and demand dynamics of employers looking to hire and individuals seeking employment, often influenced by factors like economy, technology, and policy.