Which of the following will most likely result in a favourable controllable margin difference?
A)sales exceeding budget; costs under budget
B)sales exceeding budget; costs over budget
C)sales under budget; costs under budget
D)sales under budget; costs over budget

Question

Quizplus · Accepted Answer

A favourable controllable margin difference occurs when sales exceed budget and costs are under budget. This means that the company is generating more revenue than anticipated while also controlling costs effectively, resulting in a larger controllable margin (the portion of the margin that can be directly influenced by management actions).

Which of the Following Will Most Likely Result in a Favourable