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Author Question: A company has a policy "investigate all variances exceeding $3,000 or 15% of the budgeted cost, ... (Read 69 times)

audie

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A company has a policy "investigate all variances exceeding $3,000 or 15% of the budgeted cost, whichever is lower." There is a variance of $2,000 in repair and maintenance costs of $12,000. What does the company do in the given situation?
◦ It should be ignored as it is less than $3,000.
◦ It deserves more attention as it is more than 15% of total repair cost.
◦ It should be considered an in-control occurrence.
◦ It should be investigated as all variances are equally important.


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Marked as best answer by audie on Mar 6, 2021

wtf444

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audie

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Reply 2 on: Mar 6, 2021
Excellent


samiel-sayed

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Reply 3 on: Yesterday
Wow, this really help

 

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