Variance Reporting Is Used to

question 20

Multiple Choice

Variance reporting is used to

• A) Improve operations
• B) Evaluate manager's performance
• C) Evaluate the accuracy of planning and forecasting processes
• D) Evaluate the accuracy of expense estimation processes
• E) All of the above

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Definitions:

Cost

The amount of money spent on the production or acquisition of a good or service.

Cash

A form of currency that can include bills, coins, and balances in bank accounts that are available for immediate use.

Joint Operators

The parties to a joint operation.

Expenses

Decreases in assets or increases in liabilities, that result in decreases in equity, other than those relating to distributions to holders of equity claims.