Large Favourable Variances Between Actual and Planned Performance May Indicate

question 17

Multiple Choice

Large favourable variances between actual and planned performance may indicate:

• A)Budget income targets may need to be revised upwards in the future
• B)That the firm must be operating efficiently
• C)That actual expenses were higher than budgeted expenses
• D)That actual income was too high and should be revised downwards in the future

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Definitions:

Gold Ore

A type of rock that contains sufficient minerals with important elements including gold; the ores are extracted through mining.

Caldera

A broad volcanic depression, generally the result of a substantial eruption followed by the fall-in of the volcano's opening.

Banded Iron Formations

Layers of iron-rich minerals alternated with silica or chert, deposited in marine environments over 2.5 billion years ago and are important iron ore sources.

Metal-rich Fluids

Liquids emanating from the Earth's crust, usually heated by magma, that are high in dissolved metals, often found in volcanic and hydrothermal areas.