A Favorable Variance Is a Variance That Increases the Flexible

question 27

True/False

A favorable variance is a variance that increases the flexible budget amount relative to the static budgeted amount.

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Definitions:

Liabilities

Economic responsibilities or liabilities a corporation has towards others, necessitating settlement over time by transferring assets such as cash, products, or services.

Return on Assets

A financial ratio that measures the efficiency of a company's use of its assets in generating profit.

Net Income

The net profit of a company calculated by deducting expenses and taxes from its total income.

Balance Sheet

A document that outlines a firm's assets, liabilities, and the equity held by shareholders, as of a certain date.