Consider the Following Statements About Variance Investigation

Multiple Choice

Consider the following statements about variance investigation:
I. Variance investigation involves a look at only unfavorable variances.
II. Variance investigation is typically based on a cost-benefit analysis.
III. Variance investigation is often performed by establishing guidelines similar to the following: Investigate variances that are greater than $X or greater than Y% of standard cost.
Which of the above statements is (are) true?

A) I only.
B) II only.
C) III only.
D) II and III.
E) I, II, and III.