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.

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Definitions:

Hippocampus

A major component of the brain that plays critical roles in the consolidation of information from short-term memory to long-term memory and spatial memory.

Hypothalamus

A small region at the base of the brain responsible for hormone production and regulation of important bodily functions like temperature and hunger.

Mental Picture

A form of internal visualization where an individual imagines or recalls an image or scene within their mind.

Acoustic Code

The representation of sounds in the mind, particularly in the context of memory, where auditory information is encoded for processing.