When comparing the difference between actual performance and planned activities, the resulting variances are analyzed for the primary purpose of:Multiple choice question.providing a basis for rewarding effective managershighlighting activities that need management attentionblaming those managers who did not meet goalsfinding budgets that have been incorrectly established
Question
When comparing the difference between actual performance and planned activities, the resulting variances are analyzed for the primary purpose of:Multiple choice question.providing a basis for rewarding effective managershighlighting activities that need management attentionblaming those managers who did not meet goalsfinding budgets that have been incorrectly established
Solution
The primary purpose of analyzing the variances between actual performance and planned activities is to highlight activities that need management attention. This is because variance analysis helps identify areas where the company is over-performing or under-performing, so that management can take corrective action if necessary.
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