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:

Probability

Probability is a measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Poisson Approximation

A mathematical method for estimating the likelihood of a certain number of occurrences taking place within a set time period.

Uniform Density

A type of distribution in which all outcomes are equally likely within a specified range, characterized by a constant probability density function.

Probability

A measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1.