Which of the Following Statements Is Characteristic of Variances

question 74

Multiple Choice

Which of the following statements is characteristic of variances?

• A)Unfavourable variances occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.
• B)Favourable variances occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.
• C)Unfavourable variances are always credits.
• D)Favourable variances are always debits.

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Definitions:

Rent-seeking Activity

Efforts by individuals or entities to increase their share of existing wealth without creating new wealth, often through manipulation or exploitation of resources.

Productive Activity

Actions or tasks that lead to the production of goods and services, contributing to the economy's output.

Operational Efficiency

Operational efficiency is the capability of an organization to minimize waste and maximize output with the least input of resources.

Public-sector Managers

Individuals who oversee and manage operations, resources, and policies within government organizations or agencies.