Comment on the following statements: 1. “Variances should not be viewed in isolation.” 2. “Profit reconciliation statement is an important statement from the point of view of management.” 3....

Comment on the following statements:

1. “Variances should not be viewed in isolation.”

2. “Profit reconciliation statement is an important statement from the point of view of management.”

3. “Management should not be guided by the designated variances—favourable or unfavourable.”