When Considering Whether to Investigate a Variance, Managers Should Consider

question 3

Multiple Choice

When considering whether to investigate a variance, managers should consider all of the following except the variance's:

• A) size.
• B) pattern of recurrence.
• C) trends over time.
• D) nature, namely, whether it is favorable or unfavorable.
• E) controllability.

---

Definitions:

Market Rate

The prevailing interest rate available in the marketplace for loans or investments of a similar risk and maturity.

Maturity

The point at which a financial instrument, investment, or policy reaches the end of its term and is due to be repaid or terminated.

Price

The amount of money expected, required, or given in payment for something.

Population

The total number of inhabitants of a particular town, area, or country.