Identify the Situation Below That Will Result in a Favorable

question 112

Multiple Choice

Identify the situation below that will result in a favorable variance.

• A) Actual costs are higher than budgeted costs.
• B) Actual income is lower than expected income.
• C) Actual revenue is higher than budgeted revenue.
• D) Actual expenses are higher than budgeted expenses.
• E) Actual revenue is lower than budgeted revenue.

---

Definitions:

Budgeting

The process of creating a plan to spend your money, forecasting future income and expenses.

Plan For The Future

A strategy or approach devised by an individual or organization to achieve long-term goals or to navigate toward a future position.

Direct Labor Budget

A detailed plan that shows the direct labor-hours required to fulfill the production budget.

Required Production

The quantity of goods or products a company needs to produce to meet its planned sales demand.