When Considering the Significance of Cost Variances, Managers Should Not

question 34

Multiple Choice

When considering the significance of cost variances, managers should not consider

• A) relative size of the variances.
• B) recurring variances.
• C) the trends of the variances.
• D) favourable or unfavourable status of the variances.

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Definitions:

Statutory Lien

A right to keep possession of property belonging to another until a debt owed by that person is discharged, created by statute.

Possessory Lien

A legal right allowing an individual to retain possession of property until a debt owed by the property owner is paid.

Artisan

A skilled craft worker who makes or creates things by hand that may be functional or strictly decorative.

Compensated Surety

A surety who receives compensation for guaranteeing the performance or obligations of another.