Variance Is a Measure of ________ and the Lower the Variance

question 8

Multiple Choice

Variance is a measure of ________ and the lower the variance, ________.

• A)expected profit; the lower the profit
• B)risk; the lower the risk
• C)standard deviation; lower the standard deviation
• D)risk; the greater the risk

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Definitions:

Revenue

The consolidated income from the sale of goods or services that constitute the backbone of a company's operational efforts.

Revenue Account

A Revenue Account tracks the income generated from a company’s primary operations, such as sales of goods or provision of services.

Expenses

Costs incurred in the process of earning revenue, including operational, administrative, and sales costs.

Supplies

Items used in the operation of a business that are consumed or not durable over a long period, such as office materials or cleaning supplies.