Option c. is the correct answer.
When the variance should be investigated.
A variance is the difference between a result's actual value and what was anticipated or budgeted. Variances can be either positive or negative. When the actual is higher than the projected or budgeted amount, a favorable variance occurs. The variance is unfavorable when actuals fall short of the amounts allocated in the budget. A variance therefore shows whether or not the actual performance is proceeding as expected.
While,
Option a. is inaccurate. As, the cause of the variance can vary, depending on factors like changes in delivery costs, market costs, production techniques, the use of subpar materials, seasonal factors, or even a simple mistake. Therefore, additional research and subsequent actions are needed to identify the cause of the variance. The cause of a variance cannot be identified by the variance itself.
Option b. is inaccurate. A variance only shows the discrepancy between the anticipated and actual amounts. It makes no mention of who is to blame for the deviation.
Option d. is inaccurate. After variances are identified, one of the most important steps is to investigate them. When actual performances significantly deviate from anticipated outcomes, variations are typically investigated.
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