In Deciding Whether to Further Investigate a Cost Variance, Managers

Multiple Choice

In deciding whether to further investigate a cost variance, managers usually:

A) Investigate all variances judged to be systematic in nature.
B) Investigate all variances under a prescribed percentage limit.
C) Investigate all variances associated with factory overhead spending, since total overhead for a firm is typically large.
D) Investigate all variances over a given dollar amount or percentage.
E) Investigate all flexible-budget but not volume-related variances.