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1. Should management investigate only U unfavorable variances or F favorable ones too? Why so or not? 2. Can the causes of variances be accountable

1. Should management investigate only U unfavorable variances or F favorable ones too? Why so or not?


2. Can the causes of variances be accountable to a specific manager?  Think about which managers are in charge of purchasing, inventory management, production, and so forth. Why do we want to know who the manager is--to know who to blame or for one or more good business reasons?  


3. Would you be concerned about whether the variance was a one-time event or will continue for some months in the future? Why so or not does that matter? What would you do to reduce your level of concern?


Top Answer

1.Yes The management by exception approach requires that only budget variances that are 'material' in amount be investigated.... View the full answer

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Other Answers

This section presents adaptable spending plans. The most well-known spending plans arranged on an adaptable premise... View the full answer

1.The management has to investigate both favorable and unfavorable variances  based upon the criterion established. If... View the full answer

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