Which of the Following Is Not a Criterion That a Company

question 39

Multiple Choice

Which of the following is not a criterion that a company might use to determine whether or not a variance is exceptional?

• A)The variance is based on a significant percentage of the standard cost.
• B)The variance is unfavorable.
• C)The variance is for a large dollar amount.
• D)The variance is for a significant percentage of the flexible budget amount.

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Definitions:

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A term referring to the tendency of humans to avoid expending effort and resources when thinking and to prefer simple and less effortful ways of processing information.