Companies must be careful to perform due diligence when selecting an outsourcing vendor

The Long-term Investments account is debited for the receipt of a dividend on an equity method investment because the dividend increases the investee's equity

Indicate whether the statement is true or false

Troy Company budgeted $12 million for customer service costs, but actually spent only $10 million. Which of the following statements is the best course of action for management to take in this instance?

A) Management will investigate this $2 million favorable variance to ensure that the cost savings do not reflect skimping on customer service. B) Because this $2 million variance is favorable, management does not need to investigate further. C) Management will investigate this $2 million unfavorable variance to try to identify and correct the problem. D) Management should not investigate every major variance, especially an unfavorable variance.