(a) The investigation of a variance is a fundamental element in the effective exercise of control through budgetary control and standard costing systems. The systems for identifying the variances may be well defined and detailed yet the procedures adopted to determine whether to pursue the investigation of variances may well not be formalized. Critically examine this situation, discussing possible effective approaches to the investigation of variances.

(b) Explain the major motivational factors that influence managers in their actions to eliminate variances from budget.