A Favourable Variance That Is Significant in a Cost Report

question 99

Multiple Choice

A favourable variance that is significant in a cost report

• A)is a positive result for a manager.
• B)is a negative result for a manager.
• C)can be ignored especially if it is a minor amount.
• D)should be investigated along with any negative variances.

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Definitions:

Tax-exempt Saving

An investment account or product that offers tax benefits, such as no taxation on the interest or profits earned.

529 Plan

A tax-advantaged savings plan designed to encourage saving for future education costs, including tuition, fees, and room and board.

Annual Return

The percentage change in an investment's value over a one-year period, taking into account both capital gains and dividend or interest earnings.

Roth IRA

A type of individual retirement account where contributions are made with after-tax dollars, but withdrawals during retirement are tax-free.