Reference no: EM132632312

Problem 1: If the conclusion from a variance analysis is that the benchmark is inappropriate then the correct management action is to:

A. do nothing.

B. write off the variance against cost of goods sold.

C. revise the benchmark.

D. replace the manager who set the benchmark.

Problem 2: If a variance analysis shows that operations are better than expected, managers should:

A. revise standard costs to make them harder to achieve.

B. change the accounting records so that unrealistic expectations aren't imposed in future.

C. do nothing.

D. monitor quality to ensure it was maintained.