The following statement is from BPP MCQ.
Operational variances should be a realistic measure of what the causes of the variances have cost the organization.
I think it is true but they says it is false.
This is what they explains ( Operational variances compare actual performance with a realistic standard cost or budget and so should provide a realistic reflection of what the causes of the variances have cost the organization (in terms of cash flow or profit).)
Why?
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Variance
11y ago#1Assuming that you have copies the question and answer correctly, then that is very odd because the answer is explaining why the statement is true :-)
The statement is true.
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