Managerial Accounting: "Chapter 10, Section 6: Determining Which Cost Variances to Investigate"

In reality at Jerry’s Ice Cream or any other company each budget line item could have/has an associated variance. The question becomes which variances should be investigated? As a decision maker you have limited resources and should allocate those resources to their most productive use. Every investigation consumes resources and has a direct expense associated with it. Being judicious in selecting and investigating variances is required of all managers. Let’s return to Jerry’s Ice Cream and determine which variance you would track and examine.