Which of the Following Statements Is Not True

question 25

Multiple Choice

Which of the following statements is not true?

• A)If actual sales are greater than budgeted sales, the result is a favorable variance.
• B)If actual cost is greater than budgeted cost, the result is an unfavorable variance.
• C)If budgeted sales are greater than actual sales, the result is an unfavorable variance.
• D)If budgeted cost is greater than actual cost, the result is an unfavorable variance.
• E)If actual cost is less than budgeted cost, the result is a favorable variance.

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Definitions:

Net Cash Inflows

The total amount of cash that a company receives during a given period, minus the total amount of cash outflows.

Payback Period

The length of time required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

Net Present Value

A calculation used to determine the value of a series of future cash flows discounted back to the present day, often employed in capital budgeting to assess the profitability of an investment.

Future Net

The projected net value or income of an investment or business activity after accounting for all anticipated costs and revenues.