How does static-budget variance analysis mislead those assessing actual performance against pro forma performance indicators? O A. Static budget variance can mislead those assessing actual against pro forma performance indicators. The key issue is that when production and sales volume fall below pro forma amounts, an unfavourable cost variance analysis is an inevitable result of what is usually considered good news. Managers may waste valuable time investigating routine-cost behaviour. OB. Static budget variance can mislead those assessing actual against pro forma performance indicators. The key issue is that when production and sales volume exceed pro forma amounts, a favourable cost variance analysis is an inevitable result of what is usually considered good news. Managers may waste valuable time investigating routine-cost behaviour. C. Static budget variance can mislead those assessing actual against pro forma performance indicators. The key issue is that when production and sales volume exceed pro forma amounts, an unfavourable cost variance analysis is an inevitable result of what is usually considered good news. Managers may waste valuable time investigating routine-cost behaviour. What is the relationship between management by exception and variance analysis? O A. Management by exception is the practice of concentrating on areas that are operating favourably and giving less attention to areas operating worse than expected. Variance analysis helps managers identify areas that are operating favourably. B. Management by exception is the practice of concentrating on areas outside a company's normal operations and giving less attention to the day-to-day operations. Variance analysis helps managers identify areas that are outside a company's normal operations. O C. Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis helps managers identify areas not operating as expected. O D. None of the above