Which of the Following Variances Would Not Be Investigated by a Manager

question 70

Multiple Choice

Which of the following variances would not be investigated by a manager following the management by exception principle?

• A)A 10% favorable variance in raw materials price
• B)A 10% unfavorable variance in direct labor rates
• C)A 10% unfavorable variance in payroll tax expense
• D)An unfavorable variance that has increased by 5% in each of the last five months

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Definitions:

Internal Business Process Measures

Metrics used to evaluate the efficiency and effectiveness of a company's internal operations.

Learning And Growth Measures

These are metrics used to evaluate an organization's efforts to improve employee capabilities, knowledge, and satisfaction, crucial for long-term success.

Tax Expense

The total amount of taxes a company is required to pay on its earnings.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time, typically reported on the income statement.