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:

Self-Control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.

Permissive

Refers to a lenient or liberal attitude, especially in the context of rules and disciplinary actions, favoring more freedom than restriction.

Authoritative Parents

A parenting style characterized by high demands and high responsiveness, where parents set clear standards but also respect their children’s autonomy.

Mexican American

An American citizen or resident of Mexican descent, often with a cultural heritage that includes traditions and customs from Mexico.