Question content area top

Part $1$

How does variance analysis help in continuous$$improvement$?$

Question content area bottom

Part $1$

A$.$

The underlying causes of unfavorable variances are$$identified$,$ and corrective action taken where possible.

B$.$

Favorable variances can provide information if the organization can identify why a favorable variance occured. Steps can often be taken to replicate those conditions more often.

C$.$

Variance analysis can help in continuous improvement by using unfavorable variances to place blame on certain managers. This creates the incentive to find creative ways for improvement. Having favorable variances results in a more efficient and profitable company.

D$.$

A and B$.$