uiz.Chapter SevelT Quiz This Quiz: 5 pts possible ounting This Question: 1 p Men

Question

uiz.Chapter SevelT Quiz This Quiz: 5 pts possible ounting This Question: 1 p Menu ments Select the amount. An unfavorable variance has a result of decreasing operating income relative to the budgeted amount. O C. A favorable variance has a resut of increasing the account balance (regardless of the account type) relative to the budgeted amount. An unfavorable variance O D. A favorable variance does not has a result of decreasing the account balance relative to the budgeted amount. investigate the cause of the

Explanation / Answer

In general, a favouriable variance is the one which exceeds the planned amount or earnings or was less than the planned costs and results in higher operating income.

An unfavouriable variance is the one which is less than the planned amount or earnings or was greater than the planned costs and results in lower operating income.

The answer is A.

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