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?
a. Department managers should be credited for favorable variances even if they are beyond their control.
b. Department managers should only be held accountable for controllable variances for their departments.
c. Department managers' performances should not be evaluated based on actual results to budgeted results.
d. Department managers should be held accountable for all variances from budgets for their departments.
Answers: 2
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