When Analyzing Period End Variance Reports, If a Variance Amount

question 21

Multiple Choice

When analyzing period end variance reports, if a variance amount is small the manager should

• A)consider the variance within normal terms and ignore it for that period.
• B)combine all such small variances and if they show a larger variance, investigate them then.
• C)consider investigating the variance as there may be undetected swings in the intervening period that require investigation.
• D)focus his or her attention on more material variances.

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