An Unfavorable Variance Is a Variance That Decreases Operating Income

question 86

True/False

An unfavorable variance is a variance that decreases operating income relative to the budgeted amount.

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Definitions:

Performance

Refers to the act of executing a task or function, often measured against preset known standards of accuracy, completeness, cost, and speed.

Multi-component

Pertains to something that is composed of multiple elements or parts.

Cohesion

The extent to which members of a group or community are united in pursuing common goals or supporting each other.

Friends

Individuals with whom one has a bond of mutual affection, typically exclusive of sexual or family relations.