If Both Favorable and Unfavorable Variances Exist, Then the Variance

question 37

True/False

If both favorable and unfavorable variances exist, then the variance obtained by netting them is always a favorable variance.

---

Definitions:

Sellers

Sellers are individuals or entities that offer goods or services in exchange for payment.

Price Ceilings

A legal maximum price set by the government for goods or services, intended to protect consumers by preventing prices from rising above a certain level.

Buyers

Individuals or entities that purchase goods or services for personal use, business operations, or for resale purposes.

Binding Price Ceiling

A government-imposed limit on the price of a good or service that is set below the market equilibrium, leading to shortages.