Which of the Following Is an Incorrect Statement Regarding Variances

question 28

Multiple Choice

Which of the following is an incorrect statement regarding variances?

• A) A variance is favorable when expected sales are more than actual sales.
• B) A variance is a difference between budgeted and actual amounts.
• C) A variance can be calculated for both revenues and expenses.
• D) A variance can be both favorable and unfavorable.

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Definitions:

Greenmail Option

A strategy where a company buys back its shares from a potential acquirer at a higher price to prevent a takeover.

Target Management

The practice of focusing organizational strategies and operations towards achieving predefined goals and objectives.

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 that prohibits monopolistic business practices and promotes competition.

Per Se Violation

In antitrust law, a restraint of trade practice so serious that it is prohibited whether or not it actually harms anyone.