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.

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Definitions:

Projected Future Sales

An estimate of the amount of sales or revenues that a company expects to achieve in a future period.

Debt-Equity Ratio

An index showing the relative financing contribution of equity and debt to a company's assets.

Growth Rate

The rate at which a company's sales, earnings, dividends, or other financial indicators increase over a period of time.