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:

Co-Payment Insurance

An insurance policy feature that requires the insured individual to pay a fixed amount out of pocket for covered services.

Medicare Reform

Changes and updates made to Medicare, the U.S. federal health insurance program for people who are 65 or older, with the aim of improving the program's efficiency, sustainability, and coverage.

First-Dollar Coverage

Insurance coverage that pays out from the initial cost, without a deductible, for covered expenses.

Out-Of-Pocket Expenditures

Expenses for medical care that aren't reimbursed by insurance and are paid directly by the patient.