A Favorable Variance Indicates That

question 88

Multiple Choice

A favorable variance indicates that:

• A)budgeted costs are less than actual costs
• B)actual revenues exceed budgeted revenues
• C)the actual amount decreased operating income relative to the budgeted amount
• D)All of these answers are correct.

---

Definitions:

Net Method

An accounting method that records transactions and balances net of any discounts or allowances.

Spot Rates

The immediate exchange rate at which one currency can be exchanged for another currency on the foreign exchange market.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and investment decisions.

Forward Contract

A non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today, often used for hedging risks.