1. Should management investigate only U unfavorable variances or F favorable ones too? Why so or not?
2. Can the causes of variances be accountable to a specific manager? Think about which managers are in charge of purchasing, inventory management, production, and so forth. Why do we want to know who the manager is--to know who to blame or for one or more good business reasons?
3. Would you be concerned about whether the variance was a one-time event or will continue for some months in the future? Why so or not does that matter? What would you do to reduce your level of concern?