All of the Following Factors Should Influence the Decision to Investigate

question 119

Multiple Choice

All of the following factors should influence the decision to investigate a variance except:

• A) Frequency of occurrence.
• B) Materiality of the variance amount.
• C) The direction of the variance (favorable or unfavorable).
• D) Capacity for management to control.

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Definitions:

Percent

A unit of measure equivalent to one hundredth of a total; a way to express a number as a fraction of 100.

Corporate Income Tax

A tax imposed on the net income of corporations, calculated by deducting permissible expenses from gross income.

Federal Expenditures

Refers to the spending by the federal government, including spending on national defense, social security, and other public services.

National Debt

The total outstanding borrowing of a government, consisting of internal and external loans, accumulated over years of budget deficits.