Why Do Variances Have Little Meaning Until Their Causes Are

question 171

Multiple Choice

Why do variances have little meaning until their causes are identified?

• A)Because they cannot be calculated correctly until the causes are known
• B)Because identifying their causes allows managers to take correct action
• C)Because identifying their causes will immediately increase net income
• D)Because identifying their causes will immediately decrease net income

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Definitions:

Sealed-Bid

A bidding process where all bids are submitted confidentially and opened at a predetermined time.

Bid Aggressively

Actively and competitively placing higher bids, often to secure an asset or win a contract in auctions or markets.

Competition

The rivalry between businesses or suppliers in the same market, aiming to achieve higher sales, greater market share, or other objectives.

High-Value

Referring to objects, services, or properties that possess a considerable worth or quality.