Top Management Notices a Variation from Budget and an Investigation

question 198

Multiple Choice

Top management notices a variation from budget and an investigation of the difference reveals that the department manager could not be expected to have controlled the variation. Which of the following statements is applicable?

• A) Department managers should be held accountable for all variances from budgets for their departments.
• B) Department managers should only be held accountable for controllable variances for their departments.
• C) Department managers should be credited for favorable variances even if they are beyond their control.
• D) Department managers' performances should not be evaluated based on actual results to budgeted results.

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United States

A country in North America consisting of 50 states and a federal district, known for its large size and diverse population.

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