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e. Which of the following statements is TRUE?
A favourable variance is not always beneficial for an organization
Managers attempt to maintain unfavourable variances
Only a flexible budget can be used to determine a variance
Favourable variances are typically not preferred by management
A favourable variance always benefits a company 5.
e. Cost variances should be investigated EXCEPT when
Expected costs of investigation exceed expected benefits
Better decisions are required by the organization
The results are unfavourable
The results are favourable
Costs incurred must be reduced 6. The flexible-budget variance measures:
a. What the costs and revenues should have been for the budgeted number of outputs
b. [actual results x the a...
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This document was uploaded on 03/23/2014 for the course COMMERCE 2AB3 at McMaster University.
- Winter '14