An Unfavorable Variance Indicates That ________

question 96

Multiple Choice

An unfavorable variance indicates that ________.

• A) the actual costs are less than the budgeted costs
• B) the actual revenues exceed the budgeted revenues
• C) the actual units sold are less than the budgeted units
• D) the budgeted contribution margin is more than the actual amount

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Definitions:

Mid-ocean Ridges

Undersea mountain ranges formed by plate tectonics, where new oceanic crust is created by volcanic activity.

Lithosphere

The rigid outer layer of the Earth, consisting of the crust and the upper part of the mantle.

Transform Faulting

A type of strike-slip fault where tectonic plates slide past each other horizontally, often causing earthquakes.

Subducted Plate

A tectonic plate that is being forced downward into the mantle by another plate at a subduction zone.