Troy company budgeted $12 million for customer service costs, but actually spent only $10 million. which of the following statements is the best course of action for management to take in this instance? a. management will investigat this $2 million favorable variance to ensure that the cost savings do not reflect skimping on customer service.

b. because this $2 million variance is favorable, management does not need to investigate further.

c. management will investigate this $2 million unfavorable variance to try to identify and correct the problem.

d. management should not investigat every major variance, especially an unfavorable variance.

The correct answer is A

Explanation:

A variance which is favorable, although have a positive sign for any company could not be ignored completely as ti could be a consequence of compromising on the quality of service of the customer being provided which could affect the company in the long run. So, it is very vital to keep a check on the favorable as well as on the unfavorable variances.

So, Management should investigate the $2 million favorable variance in order to ensure the cost savings which should not reflect on the customer service.

1: b     the use of non-standard grammar

2: c     strong and willful.

its correct i took the test have a nice day: )

c is the correct answer.