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:

Dividends in Arrears

Unpaid dividends on cumulative preferred stock, which must be paid out before any dividends can be issued on common shares.

Cumulative Preferred Stockholders

Investors holding a type of preferred stock that accumulates dividends in arrears should the dividends not be declared in any given period.

Non-Participating

Refers to insurance policies or investment products that do not provide dividends or bonuses to policyholders or investors.

Yearly Dividend

The total dividend payment a company offers to its shareholders annually, which can be a sign of the company's profitability and financial health.