Variance Analysis Involves the Steps Listed Below

question 45

Multiple Choice

Variance analysis involves the steps listed below. In which order should the steps be performed?
1 Draw conclusions and take action
2 Calculate variances
3 Choose variances for further investigation
4 Identify reasons for variances

• A) 1, 2, 3, 4
• B) 2, 3, 4, 1
• C) 2, 1, 4, 3
• D) 2, 4, 3, 1

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Definitions:

Rounded

The process of adjusting a number to a nearby specified value, usually to a specified number of significant digits or decimal places.

11%

A percentage representing eleven parts out of a hundred.

Property Value

Typically refers to the monetary worth of a real estate property, established for the purpose of taxation or sales.

Compounded 12 Times Per Year

Refers to the process of applying interest to an original amount of money, with the interest being calculated and added twelve times in a year.