BUS105: Managerial Accounting

At Jerry's Ice Cream or any other company, each budget line item could have an associated variance. The question becomes which variances should be investigated. As a decision-maker, you have limited resources, and you should allocate them to their most productive use. Every investigation consumes resources and has a direct expense associated with it. All managers must be judicious in selecting and investigating variances. Let's return to Jerry's Ice Cream to determine which variance you would track and examine.