A Favorable Variance Is a Variance That

question 18

Multiple Choice

A favorable variance is a variance that

• A)increases cash relative to the budgeted amount.
• B)decreases cash relative to the budgeted amount.
• C)increases operating income relative to the budgeted amount.
• D)decreases operating income relative to the budgeted amount.

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Definitions:

Fatty Acid

Organic compounds consisting of a hydrocarbon chain and a terminal carboxyl group, important components of lipids in the body such as fats and oils, playing key roles in energy storage and cell structure.

Carbon Chain

A series of carbon atoms linked together, which can be straight, branched, or arranged in rings, forming the backbone of organic molecules.

Triglycerides

A type of fat (lipid) found in your blood, used by the body for energy but high levels can increase the risk of heart disease.

Glycerol

A simple polyol compound that serves as a building block for lipids and can be converted into glucose by the liver.