Which of the following statements regarding variances is(are) false?
(A) In general and holding all other things constant, an unfavorable variance decreases operating profits.
(B) A favorable variance is not always good, and an unfavorable variance is not always bad.
A) Only A is false.
B) Only B is false.
C) Both of these are false.
D) Neither of these is false.

Question

Quizplus · Accepted Answer

Both statements are true. An unfavorable variance typically decreases operating profits, and a favorable variance is not always beneficial, nor is an unfavorable variance always detrimental, as they depend on the context and underlying reasons.

Which of the Following Statements Regarding Variances Is(are) False