Cost variances are further investigated for price and efficiency variances because:

Group of answer choices

All of the answer choices are correct.

It helps to identify which department managers are responsible for major discrepancies and should find solutions.

An unfavorable price variance could be overshadowed by favorable efficiency variance and not investigated for potential corrections.

It is necessary to find out whether the cost variances are due to price variance or efficiency variance for both and take corrective action accordingly.