When Considering Whether to Investigate a Variance, Managers Should Consider

question 3

Multiple Choice

When considering whether to investigate a variance, managers should consider all of the following except the variance's:

• A) size.
• B) pattern of recurrence.
• C) trends over time.
• D) nature, namely, whether it is favorable or unfavorable.
• E) controllability.

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Definitions:

Payee

An individual or entity that is designated to receive a payment or financial transaction.

Nonnegotiable

Refers to a financial instrument that cannot be transferred or endorsed to another party.

Separate Agreement

A distinct contract or arrangement that is made independently from any other agreements or contracts.

Negotiable

Refers to a written and signed promise or order to pay a specific sum of money that can be transferred from one holder to another with the ownership of the document constituting ownership of the value.