Question

Which of the following statements is true?

a. managers investigate all variances
b. repeating favorable variances could indicate that the standards are too low
c. unfavorable variances always indicate a performance problem
d. variances in different areas are never related

Answer 1

a. managers investigate all variances. ==>TRUE

b. repeating favorable variances could indicate that the standards are too low. ==> TRUE

c. unfavorable variances always indicate a performance problem. ==>FALSE

d. variances in different areas are never related. ==> FALSE