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:

Valentine's Gift

A present given to express affection or love on Valentine's Day, typically symbolizing romantic interest or appreciation.

Assignment

The transfer of rights or property from one party to another.

Delegation

The act of transferring responsibility and authority from one person to another while maintaining accountability for the outcome.

Novation

The act of replacing an obligation to perform with a new obligation, or substituting a new party into an existing contract.