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Why do variances have little meaning until their causes are identified?

jarzola

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Why do variances have little meaning until their causes are identified?

Why do variances have little meaning until their causes are identified?

▸ Because identifying their causes will immediately decrease net income

▸ Because identifying their causes will immediately increase net income

▸ Because they cannot be calculated correctly until the causes are known

▸ Because identifying their causes allows managers to take correct action

Textbook

Managerial Accounting

Managerial Accounting

Edition: 4^th

Author: Davis

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jarzola Author

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this is exactly what I needed

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This calls for a celebration Person Raising Both Hands in Celebration

Person Raising Both Hands in Celebration

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