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.

---

Definitions:

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, regulating the passage of substances in and out.

Proton

A subatomic particle found in the nucleus of an atom, carrying a positive electric charge.

Chemical Unit

A measurement or quantity of a chemical substance that is considered a standard or basic amount for scientific experiments and calculations.

Tissue

Groups of cells within an organism that have similar structure and function.