Which of the following statements is true with regard to variances requiring investigation?
i. Favourable variances do not need to be investigated.
ii. Large variances should be investigated.
iii. Consistent trends in variances should be investigated.

A) i
B) ii
C) i and ii
D) ii and iii

Favourable Variances

Differences between actual costs and budgeted costs that result in a better-than-expected financial performance, often indicating cost savings or higher revenues.

Large Variances

Significant differences between planned and actual figures in a budget, project, or any performance measurement, indicating greater deviations from expectations.

Consistent Trends

Patterns or changes in data that continue over a period of time in a similar manner.