Which of the following is NOT a good criteria, rule or reason as to why variances should be investigated?

A.

Variances should be investigated when they are considered material.

B.

In some instances, subjective judgment may replace an objective rule of thumb.

C.

It is equally important to investigate favorable variances as well as unfavorable.

D.

Generally, materiality is based on an objective criterion such as a set percentage of deviation from the budgeted amount