A Favorable Expense Variance Is When Budgeted Expenses Are Less

question 10

True/False

A favorable expense variance is when budgeted expenses are less than actual expenses.

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold, indicating the amount before deducting operating expenses.

Cost Of Merchandise Sold

The total expense incurred by a business to purchase or manufacture the goods sold during a period.

Merchandise Inventory

The total cost of all goods held by a company that are available for sale to customers, part of current assets on the balance sheet.

Accumulated Depreciation

The contra asset account credited when recording the depreciation of a fixed asset.