Managements Interest in Variances Is Due To

question 2

Multiple Choice

Managements interest in variances is due to:

• A)the need to gain the information that may assist them to put things back in control.
• B)the desire to gain the maximum information.
• C)the need to compensate employees.
• D)the desire to check all details.

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Definitions:

Forecast Error

The difference between the actual outcome and the predicted outcome, often used in the context of demand forecasting in supply chain and finance.

Managerial Decisions

Decisions made by managers that influence the direction and performance of a business or organization.

Supply Of Raw Materials

The provision and delivery of the basic materials required by companies to manufacture their products.

Highly Variable

Describes processes or systems subject to high levels of change or fluctuation, often challenging to predict or manage.