A Favorable Variance Is a Variance That

question 192

Multiple Choice

A favorable variance is a variance that

• A)increases costs relative to the budgeted amount.
• B)decreases cash relative to the budgeted amount.
• C)increases operating income relative to the budgeted amount.
• D)decreases operating income relative to the budgeted amount.

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Definitions:

Feedback

The process of giving and receiving information about performances or behaviors, aimed at improving future outcomes.

Norm

A standard or pattern of behavior that is considered typical or expected within a specific group or society.

Equilibrium

A state of balance or stability within a system, where opposing forces or influences are equal and cancel each other out.

Innovation

The introduction or application of new ideas, methods, or products intended to improve efficiency, effectiveness, or competitive advantage.