Q188
Consideration of increased operating income relative to budgeted amount is classified as
A.
favourable variance
AnswerB.
unfavourable variance
C.
revenue variance
D.
cost variance
Answer: Option A
Solution
Answer: Option A
Solution:
Consideration of increased operating income relative to budgeted amount is classified as favourable variance. A favorable budget variance indicates that an actual result is better for the company (or other organization) than the amount that was budgeted.