Identify the Situation That Will Result in a Favorable Variance

question 51

Multiple Choice

Identify the situation that will result in a favorable variance.

• A) Actual revenue is higher than budgeted revenue.
• B) Actual revenue is lower than budgeted revenue.
• C) Actual income is lower than expected.
• D) Actual costs are higher than budgeted costs.
• E) Actual expenses are higher than budgeted expenses.

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Definitions:

Agent

An individual or entity authorized to act on behalf of another (known as the principal) in dealings with third parties.

Infant

An infant refers to a very young child or baby, often defined legally as a person under a certain age, typically under one year old, but the term can extend to younger children in different contexts.

Contract

An enforceable arrangement under law, involving multiple parties.

Infant

A legal term referring to a person who is not yet of the age of majority and therefore lacks the legal capacity to enter into contracts.