Which of the Following If Not True About the Variance-Analysis

question 105

Multiple Choice

Which of the following if not true about the variance-analysis approach?

• A)Variable costs have unused capacity.
• B)Variable costs never have any unused capacity.
• C)The detailed analysis helps managers identify and focus on the areas not operating as expected.
• D)Manages of small businesses understand their operations based on personal observations and nonfinancial measures.
• E)Managers find less value in doing additional measurements required for comprehensive analyses.

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