Consider the Following Statements About Variance Investigation

question 50

Multiple Choice

Consider the following statements about variance investigation:
I. Variance investigation involves a look at only unfavorable variances.
II. Variance investigation is typically based on a cost-benefit analysis.
III. Variance investigation is often performed by establishing guidelines similar to the following: Investigate variances that are greater than $X or greater than Y% of standard cost.
Which of the above statements is (are) true?

• A) I only.
• B) II only.
• C) III only.
• D) II and III.
• E) I, II, and III.

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Definitions:

General Partners

A reworded definition: Members of a partnership who share unlimited liability for the debts and obligations of the business and actively manage its affairs.

Access

The right or opportunity to use, approach, or enter a place or service, or the act of gaining this right.

Books and Records

Official documentation of a business's financial transactions, activities, and obligations, maintained for legal and operational purposes.

Oral Promise

A commitment or assurance given verbally, not in written form, which may or may not be legally binding depending on the context.