Question

If they are to be useful to managers, variances should be reported?

1) simultaneously to all managers within a week after the end of the month.
2) in dollar amounts as soon as all costs are known.
3) in physical terms or dollar amounts as promptly as feasible.
4) in physical terms and dollar amounts if the variance exceeds 10

Answer 1

Variances should be reported in physical terms or dollar amounts as promptly as feasible to be useful to managers.

Step-by-step explanation:

To be useful to managers, variances should be reported in physical terms or dollar amounts as promptly as feasible. This means that variances should be communicated as soon as possible and in a format that is easy to understand, either in physical terms (quantities) or dollar amounts. The specific time frame or threshold for reporting variances is not mentioned in the question, so options 1), 2), and 4) are not correct.