Which of the Following Statements Is TRUE

question 169

Multiple Choice

Which of the following statements is TRUE?

• A)A favourable variance always benefits a company.
• B)Managers attempt to maintain unfavourable variances.
• C)Favourable variances are typically not preferred by management.
• D)Only a flexible budget can be used to determine a variance.
• E)A favourable variance is not always beneficial for an organization.

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Definitions:

Synovial Membrane

The soft tissue that lines the inner surface of synovial joints, producing synovial fluid for lubrication.

Lubricating Film

A thin layer of liquid or substance applied to surfaces to minimize friction and wear, commonly found in mechanical systems, joints, and tissues.

Smooth Surface

A surface with an even and uninterrupted texture, free of noticeable bumps, ridges, or indentations.

Synovial Fluid

A viscous fluid found in the cavities of synovial joints that reduces friction between articular cartilages during movement.