Which is a correct sequence of steps in investigating variances and implementing corrective action?

• A. Identify variance, determine cause, assess controllability, decide on corrective actions, implement, and review results.
• B. Implement, identify variance, review results, determine cause, assess controllability, decide on actions.
• C. Review results, identify variance, implement, determine cause, assess controllability, decide on actions.
• D. Identify variance, implement, review results, assess controllability, determine cause.

Answer: (A)

The sequence follows a logical control-cycle for variances: you first identify that a variance exists by comparing actual results to the standard or budget. Next, you investigate the cause to understand why the deviation occurred. Then you assess whether the variance is within the area you can control, so you know whether corrective action can realistically be taken. After that, you decide on appropriate corrective actions to address the root cause. You implement those actions and finally review the results to confirm whether the action had the desired effect and to learn for future cycles.

This exact order ensures you act on real evidence and only after understanding both the variance and its controllability. Starting actions before identifying the variance or its cause, or reviewing outcomes before implementing changes, would break the logical flow and reduce the chances of effective improvement.