In Deciding Whether to Further Investigate a Cost Variance, Managers

question 119

Multiple Choice

In deciding whether to further investigate a cost variance, managers usually:

• A) Investigate all variances judged to be systematic in nature.
• B) Investigate all variances under a prescribed percentage limit.
• C) Investigate all variances associated with factory overhead spending, since total overhead for a firm is typically large.
• D) Investigate all variances over a given dollar amount or percentage.
• E) Investigate all flexible-budget but not volume-related variances.

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