From a Budgeting View,which of the Following Statements Is Not

question 74

Multiple Choice

From a budgeting view,which of the following statements is not true concerning variances?

• A)A favorable expense variance means the budgeted amount was more than actual.
• B)Cumulative variance = current month's variance + variances of previous months.
• C)Ideally,cumulative variances for the year will equal zero.
• D)Ideally,cumulative variances for the year should have a positive value.

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Definitions:

Project's Assets

Resources owned by a project that have economic value and can contribute to the project's financial success.

Net Income

The net income a company earns once all expenses and taxes are subtracted from the total revenue.

Project's Fixed Assets

Project's fixed assets refer to the long-term tangible assets that are used in the operation of a project and are not expected to be converted into cash in the short term.