Which Statement Is $\bold{not}$ Correct?
A)A Favourable Variance Occurs When Actual Revenues Are Greater

question 56

Multiple Choice

Which statement is $\bold{not}$ correct?

• A)A favourable variance occurs when actual revenues are greater than budgeted revenues.
• B)A favourable variance occurs when actual expenses are less than budgeted expenses.
• C)An unfavourable variance occurs when budgeted revenues are less than actual revenues.
• D)An unfavourable variance occurs when budgeted expenses are less than actual expenses.

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Definitions:

Inventory

The total amount of goods and materials held by a company to support production, fulfill orders, and maintain service levels.