When Would a Cost Variance Be Listed as Unfavorable

question 122

Multiple Choice

When would a cost variance be listed as unfavorable?

• A) When actual costs are less than budgeted costs
• B) When actual costs exceed budgeted costs
• C) When actual costs are equal to budgeted costs
• D) When actual sales are less than budgeted sales

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Definitions:

Deferred Income Taxes

Income taxes that are assessed or due for the current period but have been deferred to be paid in a future period.

Income Tax Purposes

The specific objectives or calculations for which income tax-related data is used, including determining taxable income and tax liability.

Gaining Control

Refers to obtaining the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often realized through acquisitions or significant share purchases.

Subsidiaries

Companies that are controlled by another company, known as the parent company, usually through majority ownership of its shares.