The Budget Variance Is Calculated As

question 83

Multiple Choice

The budget variance is calculated as:

• A)Earned value minus planned value.
• B)Planned value minus actual cost.
• C)Earned value minus actual cost.
• D)Cost minus planned value.

---

Definitions:

Investment in Pitts Co.

The allocation of resources, typically financial, into Pitts Company with the expectation of generating a future financial return.

Goodwill

The excess value paid over the net assets of a company during acquisition, reflecting attributes like brand reputation and customer loyalty.

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Partial Equity Method

A variation of the equity method in accounting, where the investor recognises income from the investee to the extent of dividends received, with some adjustments.