In general,the terms favorable and unfavorable are used to describe the effect of a variance on
A)net income.
B)sales revenue.
C)production costs.
D)operating expenses.
E)balance sheet.

Question

Quizplus · Accepted Answer

The terms favorable and unfavorable are typically used to describe the effect of variances on net income. Favorable variances are those that increase net income, while unfavorable variances are those that decrease net income. This is because net income is a key financial metric that reflects the profitability of a business. Variance analysis is a tool that helps managers understand the drivers of changes in net income, and the terms favorable and unfavorable are a shorthand way of describing the impact of those changes.

In General,the Terms Favorable and Unfavorable Are Used to Describe