The Activity Variance for Revenue Is Favorable If the Actual

question 330

True/False

The activity variance for revenue is favorable if the actual revenue for the period exceeds the revenue in the static planning budget.

---

Definitions:

Allowance Method

An accounting technique used to estimate and account for potential uncollectible debts.

Bad Debts Expense

Expenses linked to accounts receivable that a firm anticipates will not be collected.

Allowance Method

An accounting technique used to account for bad debts, which estimates uncollectible accounts receivable and creates a provision for them.

Accounts Receivable

Financial dues from customers to an organization for products or services that have been dispensed but not reimbursed.