Some Financial Variances Show Increases in Operating Income Relative to a Budgeted

question 38

Multiple Choice

Some financial variances show increases in operating income relative to a budgeted or allocated amount, and others show decreases in operating income.Respectively, these variances are

• A)budgeted, standard.
• B)favourable, unfavourable.
• C)standard, budgeted.
• D)unfavourable, favourable.
• E)fixed, variable.

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Definitions:

Debts

Money that is owed or due to be paid to another individual or entity.

Sole Proprietorship

Business ownership in which there is no legal distinction between the sole proprietor’s status as an individual and his or her status as a business owner.

Partnership

A legal business structure where two or more individuals agree to share the profits and losses of a business.

Corporation

Legal organization with assets and liabilities separate from those of its owner(s).