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?β β
a. Department managers should be credited for favorable variances even if they are beyond their control. β
b. Department managers should only be held accountable for controllable variances for their departments. β
c. Department managers' performances should not be evaluated based on actual results to budgeted results. β
d. Department managers should be held accountable for all variances from budgets for their departments.
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Top management notices a variation from budget and an investigation of the difference reveals that t...
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