Where There Is an Insignificant Adverse Variance, Management Is Best

question 72

Multiple Choice

Where there is an insignificant adverse variance, management is best advised to:

• A)ignore it, as the cost of investigation may outweigh the benefit.
• B)investigate immediately and in full detail.
• C)keep the variance under review.
• D)ignore it, as it may be compensated by an insignificant favourable variance.

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Definitions:

Channel

A medium through which a product or service is distributed to its end-users, such as a retail store or online platform.

Resellers

Entities or individuals that purchase goods or services to sell them again rather than consuming or using them.

Trade Discounts

Reductions in price given by sellers to buyers in the business-to-business market.

Manufacturer

An entity engaged in the process of producing goods for sale by using raw materials, labor, and machinery.