Which of the Following Statements Is True Regarding Variance Analysis

question 17

Multiple Choice

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

• A) It requires all variances, regardless of size, to be investigated by managers.
• B) The use of ideal standards over practical standards will always be the best motivator to employees.
• C) An "unfavorable" variance should always be interpreted as "bad".
• D) It is often not available in a timely enough manner to be useful to employees.

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Definitions:

Current Liabilities

Obligations or debts that a company must pay within one year or within the normal operating cycle.

Federal Depository Bank

A financial institution that is authorized to hold deposits for the Federal Reserve System and process related transactions.

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, including social security and Medicare taxes in the United States.

Contingent Liabilities

Potential financial obligations that may occur depending on the outcome of a future event.