A ________ Error Occurs When the Company Dismisses a Good

question 37

Multiple Choice

A ________ error occurs when the company dismisses a good idea.

• A) probability
• B) performance
• C) double counting
• D) DROP
• E) GO

---

Definitions:

Unfavorable Variance

A situation where actual results are worse than expected results, often indicating higher costs or lower revenues than planned.

Favorable Variance

A financial term indicating that actual costs were lower than the planned or standard costs in a budget.

Budgeted Amount

The total amount of money that has been allocated for a specific purpose or period of time.

Return on Assets

A financial ratio that measures the profitability of a company in relation to its total assets.