Which of the Following Statements Is False Regarding Variance Analysis

question 52

Multiple Choice

Which of the following statements is false regarding variance analysis in the modern manufacturing environment?

• A) It is often not timely enough to be useful to managers.
• B) It is often too detailed to be of much use to managers.
• C) Not all variances are required to be investigated.
• D) It can influence employee behavior.

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Definitions:

FASB Controls

Guidelines and standards established by the Financial Accounting Standards Board (FASB) to govern the financial reporting and accounting practices of companies in the United States.

GAAP Controls

Financial and accounting guidelines and standards designed to ensure accurate and consistent financial reporting and accounting practices.

Bank Statement

A document or report provided by a bank, summarizing the transactions in a customer's account over a specific period.

Liability

An obligation of a company or individual, representing debts or financial responsibilities owed to others.