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Volume Variances Consider the Following Statement: "No Manager Should Be Held Responsible

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Essay

Volume variances
Consider the following statement: "No manager should be held responsible for a volume variance." Briefly explain why a volume variance should not be investigated and viewed as the responsibility of some manager in an organization.


Definitions:

Market Baskets

A collection of goods and services used as a standard way of tracking the cost of living or inflation over time.

Preferences

In economics, this refers to the ordering of alternatives based on their utility, showing the subjective tastes and choices of individuals.

Complete

Fully accomplished or having all necessary parts or steps.

Transitivity

Transitivity in decision making refers to the consistency among choices, where if option A is preferred over B and B over C, then A should be preferred over C.

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