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:

Power Distance

A societal aspect indicating how much individuals with less authority within organizations and institutions anticipate and accept an unequal distribution of power.

Uncertainty Avoidance

The cultural tendency to be uncomfortable with uncertainty and risk in everyday life.

Individualism-Collectivism

A cultural dimension that describes the degree to which people in a society are integrated into groups or prefer to act as independent individuals.

Masculinity-Femininity

A cultural dimension that reflects the distribution of roles between the genders in a society.