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Sir, if the variance is not recurring, should we still investigate the cause of the variance?
You would not know whether or not it was going to recur until you had investigated why the variance occurred. The point of investigating is to try and make sure that it does not recur.
thank you Sir.
Also, are those operating statements (which list the variances to show why the actual profit is different than the budgeted profit) distributed to budget holders?
They could be – there are no rules – but it is unlikely. Budget holders would more likely just be asked to explain/investigate the variances that they are responsible for.