Why Do Variances Have Little Meaning Until Their Causes Are

question 171

Multiple Choice

Why do variances have little meaning until their causes are identified?

• A)Because they cannot be calculated correctly until the causes are known
• B)Because identifying their causes allows managers to take correct action
• C)Because identifying their causes will immediately increase net income
• D)Because identifying their causes will immediately decrease net income

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Definitions:

Product Design

The process of creating a new product to be sold by a business to its customers, focusing on functionalities, aesthetics, and usability.

Divisional Structures

Organizational frameworks that group together departments based on similar products, services, markets, or geographic locations.

Functional Design

The aspect of design focused on the practical, functional aspects of a product or system, ensuring it meets the user's needs.

Product Design

The process of creating and developing a new product to be offered to customers, focusing on its features, functionality, appearance, and usability.