Which one of the following is a more serious concern in terms of an adverse variance from budget?
A)a negative variance of $10,000 in budget expenditures
B)a $10,000 shortfall in value earned on the project to date
C)a positive variance of $10,000 in budget expenditures
D)a $10,000 surplus in value earned on the project to date

Question

Quizplus · Accepted Answer

A shortfall in value earned on the project to date indicates that the project is not meeting expectations in terms of revenue generation or cost savings, which could lead to long-term financial problems. The other options either represent a deviation from the budget plan (positive or negative) or a surplus in value earned, which may not necessarily be a cause for concern.

Which One of the Following Is a More Serious Concern