alleryStart learning →Variance analysis is a tool of budgetary control and of what other function?
ATax return filing
BShare issue pricing
CDebt recovery effort
DPerformance evaluation
Answer & Solution
Correct answer: D. Performance evaluation
Comparing budgeted with realised amounts both controls the budget and judges how well managers performed.
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Related questions
Management accounting information is computed by reference to whose needs?Variance analysis compares actual and budgeted cost of which inputs?What happens in management by exception when a deviation from the norm is insignificant?In passive management by exception, when does the manager step in?An adverse variance exists when budget versus actual leads to what effect on profit?Under standard costing, where are fixed costs of unsold goods made in a period carried forBesides costs, variance analysis can also be carried out for which other item?What is the stated purpose of analysing present cost variances?