Consider the Following Statements About Variance Investigation

question 50

Multiple Choice

Consider the following statements about variance investigation:
I. Variance investigation involves a look at only unfavorable variances.
II. Variance investigation is typically based on a cost-benefit analysis.
III. Variance investigation is often performed by establishing guidelines similar to the following: Investigate variances that are greater than $X or greater than Y% of standard cost.
Which of the above statements is (are) true?

• A) I only.
• B) II only.
• C) III only.
• D) II and III.
• E) I, II, and III.

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Definitions:

Substance

The fundamental or essential component of something that gives it its character and identity.

Judgment

The cognitive process of evaluating or making decisions about something, often involving the consideration of evidence, criteria, and values.

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The sum of an individual's awareness and subjective experiences, encompassing thoughts, sensations, perceptions, moods, and emotions.