An Unfavorable Variance May Be Due to Poor Planning Rather

question 14

True/False

An unfavorable variance may be due to poor planning rather than due to inefficiency.

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Definitions:

Management Failure

The inability of a company's management to make the correct decisions or to implement strategies effectively, leading to poor performance.

Regulatory Changes

Adjustments or modifications in laws and regulations that affect how businesses operate.

Competitive Pressure

The influence exerted by competing businesses in a market, driving companies to improve products, services, and efficiency.

Entrepreneurial Mind-Set

A mindset that embraces innovation, risk-taking, and the pursuit of new business opportunities.