Final answer:
The daily maximum variance in a cash drawer is the allowed threshold for discrepancies in cash handling. This limit varies by company policy, often ranging between $3 to $20, and serves as an internal control measure.
Step-by-step explanation:
The daily maximum variance allowed in the cash drawer typically refers to the maximum amount of money by which the cash drawer can be over or short at the end or the beginning of a business day. While this threshold can vary by company policy, common variances range from $3 to $20. Businesses establish these limits to maintain accurate financial records and prevent significant accounting discrepancies. It is a matter of internal control and would be part of the company's broader financial policies.