Company B does not conduct a level three variance analysis on inputs because there is no apparent cost benefit to doing it. Which of the following responses would be appropriate in this case?

1. 1. Given the variance after the fact it is too late to make a difference to the outcome.
2. 2. The individual variances dont make a difference, only the overall difference.
3. 3. Separating the price or rate variances from the efficiency variances is beneficial because improvements can be made in efficiency and future periods will benefit.
4. 4. Only the year-end variance matters, so any effort to analysis before is wasted.