Suppose Amazon.com budgets ($ 5) million for customer service costs but actually spends ($ 4) million. Which

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Suppose Amazon.com budgets $\$ 5$ million for customer service costs but actually spends $\$ 4$ million. Which of the following is true?

a. Because this $\$ 1$ million variance is favorable, management does not need to investigate further.

b. Management will investigate this $\$ 1$ million favorable variance to ensure that the cost savings do not reflect skimping on customer service.

c. Management will investigate this $\$ 1$ million unfavorable variance to try to identify and then correct the problem that led to the unfavorable variance.

d. Management should investigate every variance, especially unfavorable ones.

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