Zevok Company budgeted $4 million for customer service costs, but actually spent only $3 million. Which of the following statements is the best course of action for management to take in this instance?
◦ Management should not investigate every major variance, especially the unfavorable ones.
◦ Because this $1 million variance is favorable, management does not need to investigate further.
◦ Management will investigate this $1 million favorable variance to ensure that the cost savings do not reflect skimping on customer service.
◦ Management will investigate this $1 million unfavorable variance to try to identify and correct the problem.