Top management notices a variation from budget and an investigation of the difference reveals that the department manager could not be expected to have controlled the variation. Which of the following statements is applicable?

Department managers should be credited for favorable variances even if they are beyond their control

Department managers should only be held accountable for controllable variances for their departments

Department managers' performances should not be evaluated based on actual results to budgeted results

Department managers should be held accountable for all variances from budgets for their departments.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Department managers should only be held ... View the full answer