When Favorable Variances Are Added to Unfavorable Variances,the Result Is

question 168

True/False

When favorable variances are added to unfavorable variances,the result is always a total favorable variance.

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Definitions:

Net Income

The amount of money left after all expenses, taxes, and costs have been subtracted from total revenue; a key indicator of a company's profitability.

Current Prices

Prices of goods, services, or assets at the current time, without adjustment for inflation.

Goods In Transit

Items that have been shipped by a seller but not yet received by the buyer, thus in the process of being transported.

Consignment

A business arrangement where goods are left in the possession of another party to sell, but ownership remains with the supplier until sold.