Which of the Following Is True of Variance

Multiple Choice

Which of the following is true of variance?

A) Managers should interpret a favorable variance as "good news" or assume it means their subordinates performed well.
B) A variance within an acceptable range is considered to be an "in-control occurrence" and calls for no investigation or action by managers.
C) The purchasing manager secured a discount for buying in bulk with fewer purchase orders which results in unfavorable material price variance.
D) Managers' performance must be evaluated solely on single variance.