Which of the Following Statements Is True of Performance Reporting

question 103

Multiple Choice

Which of the following statements is true of performance reporting?

• A) Responsibility reports should focus on the person responsible for unfavorable variances, rather than information.
• B) Managers should not be held accountable for uncontrollable variances.
• C) Only unfavorable variances should be explained in the reports.
• D) Every variance, regardless of magnitude, must be investigated by the managers.

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Definitions:

Equilibrium Conditions

The state in a market where the supply of goods matches demand, with no incentive for change in price or quantity.

Technological Change

Innovations and improvements in technology that typically increase productivity and efficiency.

Automobile Industry

A sector of the economy focused on the manufacturing, designing, and marketing of motor vehicles.

Input Markets

Markets where resources or inputs used for production, such as labor, materials, and machinery, are bought and sold.