Which of the Following Is NOT Characteristic of Variance Investigation

question 173

Multiple Choice

Which of the following is NOT characteristic of variance investigation?

• A)The investigation should be undertaken only if the anticipated benefits are greater than the expected costs.
• B)It is difficult to assess the costs and benefits of variance analysis on a case-by-case basis.
• C)Variances are not investigated unless they are large enough to be of concern.
• D)Every variance is investigated.

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Definitions:

Investments

Assets purchased with the expectation that they will generate income or will appreciate in the future.

Net Income

The total revenue of a company minus the total expenses, indicating the profit earned over a specific period.

Organizational Expenses

Costs incurred during the formation of a corporation, partnership, or any business entity, such as legal and administrative fees.

Intangible Assets

Non-physical assets such as patents, trademarks, and goodwill that have value to a business.