Which of the Following Variances Will Always Be Favorable When

question 132

Multiple Choice

Which of the following variances will always be favorable when actual sales exceeds budgeted sales?

• A) Variable cost.
• B) Fixed cost.
• C) Sales activity.
• D) Operating profit.

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Definitions:

Single Appeal

An advertising or persuasive strategy focusing on one key message or benefit to influence the audience.

Product's Audience

Refers to a specific group of people a product is designed and marketed for.

Intrinsic Benefits

Advantages or positive effects that are inherent to an activity or object, valuing it for its own sake rather than for external reasons.

Extrinsic Benefits

Rewards or advantages coming from external sources, separate from the intrinsic value of the activities performed.