The Emphasis on Variance Analysis and Its Use in Performance

Multiple Choice

The emphasis on variance analysis and its use in performance evaluation must be such that:

A) managers focus on setting easy to attain targets
B) larger unfavorable variances should result in negative consequences for personnel held accountable
C) management should set targets that challenge but are reasonably achievable and require creativity and resourcefulness by personnel held accountable
D) Management should stretch resources to meet goals even if continuous improvement and quality suffers