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:

Jnd

Just noticeable difference; the minimum change in stimulation required to detect a difference between two stimuli.

Hair Cells

Sensory cells located in the inner ear that are essential for hearing and balance, converting mechanical sound vibrations into nerve impulses.

Frequency Theory

A theory about how sounds are transmitted and interpreted, stating that the frequency of auditory nerve impulses matches the frequency of the tone, enabling us to detect pitch.

Hertz

A unit of frequency in the International System of Units (SI), denoting one cycle per second.