A Revenue Variance Is Favorable If the Actual Revenue Exceeds

question 225

True/False

A revenue variance is favorable if the actual revenue exceeds what the revenue should have been for the actual level of activity of the period.

---

Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from buying an additional unit of a commodity or service.

Total Utility

The complete satisfaction or pleasure a consumer obtains from consuming a given quantity of goods or services.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, reflecting their preferences for certain combinations of goods.

Budget Constraint

Constraints on the assortments of products and services available for purchase by a consumer, determined by their financial resources and market prices.