Large Favourable Variances Between Actual and Planned Performance May Indicate

question 38

Multiple Choice

Large favourable variances between actual and planned performance may indicate:

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

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Definitions:

Set Limits

The act of establishing boundaries or rules in a relationship, interaction, or environment to maintain order and protect well-being.

Contracting

A process in professional services, particularly in therapy or social work, that involves establishing agreements on the goals, roles, and responsibilities between a service provider and client.

Declarative Statements

Sentences that make a statement or express an opinion or fact, typically in a straightforward and unequivocal manner.

Directives

commands or instructions given with authority, often used in legal, professional, or organizational contexts.