An Unfavourable Variance Occurs When

question 21

Multiple Choice

An unfavourable variance occurs when:

• A)actual costs are higher than budgeted costs.
• B)budgeted costs are lower than actual costs
• C)actual sales are lower than budgeted sales
• D)all the options are correct

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Definitions:

Cash Collected

The amount of money received by a company during a specific period from all sources, including sales, investments, financing, etc.

Net Sales

The total revenue from sales of products or services less returns, allowances, and discounts.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Depreciation

The reduction in value of tangible assets over time due to use and wear and tear.