The Chief Weakness with Using the Dollar Threshold Decision Rule

Multiple Choice

The chief weakness with using the dollar threshold decision rule to determine which variances to investigate is

A) Although the dollar amount may be large it could be a very low percentage of total outlays for an input
B) It would require investigation of small dollar variance that are a high percentage of the total outlay for an input
C) It may allow expenses to over-run their budgets by large dollars amounts or percentages and not be examined
D) It maximizes the number of line items that must be examined
E) All of the above