Question content area top

Part $1$

Why might an analyst examining variances in the production area look beyond that business function for explanations of those$$ variances?

Question content area bottom

Part $1$

A$.$

An individual business function is interdependent with other business$$ functions, such as$$ design, marketing, and purchasing.

B$.$

Under management by$$ exception, an outside factor is always required to explain variances.

C$.$

If there is a variance in an$$ area, the budgets or standards used must have been wrong. An analyst is required to determine who developed the incorrect budgets.