Define variance. What is the difference between a favorable and an unfavorable variance?
What will be an ideal response
A variance is the difference between an actual amount and the budgeted amount. A variance is favorable if it increases operating income. For example, if actual revenue is greater than budgeted revenue or if actual expense is less than budgeted expense, then the variance is favorable. If the variance decreases operating income, the variance is unfavorable. For example, if actual revenue is less than budgeted revenue or if actual expense is greater than budgeted expense, the variance is unfavorable.
You might also like to view...
Describe the Advertising Council and its role in developing corporate-nonprofit alliances:
What will be an ideal response?
The act of taking the portion of one sound recording and reusing it in a subsequent recording
A. Dipping B. Taking C. Sampling D. Doping
The phase-out approach to product deletion involves a process of continuous price increases to make as much profit as possible before the product is finally priced out of existence.
Answer the following statement true (T) or false (F)
The majority of entrepreneurial start-ups are financed with angel financing.
Answer the following statement true (T) or false (F)