Which of the Following Statements Is False Regarding Variance Analysis

question 94

Multiple Choice

Which of the following statements is false regarding variance analysis in the modern manufacturing environment?

• A) It is often not timely enough to be useful to managers.
• B) It is often too detailed to be of much use to managers.
• C) Not all variances are required to be investigated.
• D) It can influence employee behaviour.

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Definitions:

Inventory Records

Documentation that keeps track of the quantities, locations, and statuses of products that a company has in stock.

EOQ Model

Economic Order Quantity model, a formula used in inventory management to determine the optimal order size that minimizes total inventory costs.

Dependent Demand

The demand for components or raw materials that is directly tied to the demand for the final product they contribute to creating.