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.

---

Definitions:

Self-enhancement

A type of motivational process that leads individuals to view themselves positively.

Self-insight

Self-insight refers to the understanding and awareness individuals have of their own internal states, motivations, desires, and patterns of behavior.

Sociometry

A quantitative method for measuring social relationships, often used to identify social networks or patterns of interaction.

Self-justification

The cognitive process of rationalizing one's behavior, decisions, or beliefs in a manner that avoids admitting fault or error.