If a Variance Is Investigated and Determined to Be Random

question 14

Multiple Choice

If a variance is investigated and determined to be random, managers should:

• A) Write off the variance against cost of goods sold
• B) Do nothing
• C) Identify and discipline the employee(s) responsible
• D) Write off the variance against work in process

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Definitions:

Blended Plan

A retirement plan combining aspects of both defined benefit and defined contribution plans.

Creative Customer Service

Innovative approaches to providing support and care to customers, aiming to exceed expectations and solve problems uniquely.

Gain-Sharing Plans

A performance-based compensation strategy that shares the cost savings from productivity improvements with employees.

Repeat Business

The recurrence of customer purchases due to satisfaction with a product or service, contributing to the company's revenue over time.