The PRIMARY Reason for Using Cost Variances Is

question 82

Multiple Choice

The PRIMARY reason for using cost variances is:

• A)that they diagnose the cause of a problem and what should be done to correct it.
• B)for superiors to communicate expectations to lower level employees.
• C)to administer appropriate disciplinary action.
• D)for financial control of operating activities.

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Definitions:

Cash Projections

Estimates of a company's future financial position based on expected cash inflows and outflows over a certain period.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Audit Log

A record that tracks the sequence of activities or changes in a system, often used for security and compliance purposes.

Transaction Journal

A detailed record showing all the financial transactions of a business, used for accounting and auditing purposes.