A Favorable Variance Indicates Which of the Following Outcomes

question 17

Multiple Choice

A favorable variance indicates which of the following outcomes?

• A)A favorable variance has the effect of increasing the static budget variance.
• B)A favorable variance has the effect of decreasing operating income relative to the budgeted amount.
• C)A favorable variance has the effect of increasing operating income relative to the budgeted amount.
• D)A favorable variance has the effect of increasing output relative to the previous budget cycle.
• E)A favorable variance has the effect of decreasing individual variable costs.

Understand the concepts of rational expectations and their impact on policy effectiveness.

Grasp the fundamentals of supply-side economics, including the role of tax rates.

Understand the impact of changes in the money supply on inflation and economic stability.

Understand the principles of adaptive and rational expectations theory.

---

Definitions:

Collective Bargaining Agreement

A collective bargaining agreement is a legally binding contract resulting from negotiations between a group of employees, often represented by a union, and their employer, covering the terms and conditions of employment.

Legal Statute

A law or regulation enacted by the legislative branch of government.

Online Identity

Represents a person's presence on the internet, encompassing usernames, profiles, and online activities.

Cyberspace

Cyberspace refers to the virtual computer world, encompassing an extensive network of digital environments and human interactions facilitated by networked computing devices.