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

---

Definitions:

Descriptive Statistics

Statistical techniques that summarize, describe, and present data in an informative way, often through measures of central tendency and variability.

Inferential Statistics

A branch of statistics that infers properties of an underlying distribution from a sample, allowing for predictions and conclusions about a population.

Correlation

A statistical procedure for measuring the strength of association between two or more variables. More generally, the degree to which variables are related.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.