Identify the Unfavourable Variance

question 42

Multiple Choice

Identify the unfavourable variance.

• A) budgeted payment for interest $1,000, actual interest $1,000
• B) budgeted payment for rent $12,000, actual rent $11,500
• C) budgeted receipts from debtors $60,000, actual receipts $65,000
• D) budgeted payment for wages $42,000, actual wages $45,000

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Definitions:

Financial Data

Refers to information related to the financial performance of an entity, including income, expenses, assets, and liabilities.

Sales On Account

Transactions where goods or services are sold and payment is deferred to a future date, essentially selling on credit.

Cost Of Goods Sold

The costs directly connected with generating the goods a firm sells to its customers.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell products, and collect cash from customers.