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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Definitions:

Optic Disk

The point in the eye where the optic nerve enters the retina, often referred to as the blind spot since it lacks photoreceptors.

Negative Employment Message

Communication from an employer that conveys unfavorable job-related information, such as a rejection notice or a notice of termination.

Emotional Stake

The emotional investment or interest an individual has in the outcome of a situation or in another person.

Direct Approach

A straightforward method of communication or problem-solving that addresses the issue without evasion or subterfuge.