Identify the Situation Below That Will Result in a Favorable

question 2

Multiple Choice

Identify the situation below 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 income.
• D)Actual costs are higher than budgeted costs.
• E)Actual expenses are higher than budgeted expenses.

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Definitions:

Major Policy Decisions

Key strategic decisions made by a company's management or board of directors that affect the overall direction and policies of the organization.

Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee the management and make major decisions affecting the company's policy and strategy.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, granting them voting rights and a share in the company's profits.

Minimum Dividends

The smallest amount of dividends a company decides to pay out to its shareholders, often based on agreements or policy.