12.

A company has a policy "investigate all variances exceeding $2000 or 10% of the budgeted cost, whichever is lower." There is a variance of 1,100 in repair and maintenance costs of $10,000. What does the company do in the given situation?

Select one:

a. It should be ignored as it is less than $2,000

b. It should be considered an in-control occurrence.

c. It should be investigated as all variances are equally important.

d. It deserves more attention as it is more than 10% of total repair cost.