Which Type of Variance Causes Operating Income to Be Lower

question 34

Multiple Choice

Which type of variance causes operating income to be lower than the budgeted operating income?

• A)Favorable variance
• B)Neutral variance
• C)Unfavorable variance
• D)Reverse variance

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Definitions:

Advantages

Advantages are benefits or favorable factors that contribute to the success and competitiveness of a business or strategy.

Disadvantages

The negative or less favorable aspects of a situation, decision, or item.

Treasury Stock

Shares bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and receiving dividend payments.