In Profit Planning and Budgeting,which Statement Is True Concerning a Favorable

question 50

Multiple Choice

In profit planning and budgeting,which statement is true concerning a favorable variance?

• A)A favorable variance would increase operating profit,holding all other things constant.
• B)A favorable variance is always positive (good),holding all other things constant.
• C)A favorable variance would decrease operating profit,holding all other things constant.
• D)A favorable variance is always negative (bad),holding all other things constant.

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Definitions:

Account Number

A unique sequence of numbers assigned to a customer's account in the books of a financial institution.

Prepaid Insurance

Definition: An asset account that represents insurance payments made in advance for coverage extending beyond the current financial reporting period.

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit.

Debit

An entry recorded on the left side of a T-account, representing an increase in assets or expenses or a decrease in liabilities, equity, or income.