Identify the situation below that will result in a favorable variance.
A)Actual revenue is higher than budgeted revenue.
B)Actual revenue is lower than budgeted revenue.
C)Actual income is lower than expected income.
D)Actual costs are higher than budgeted costs.
E)Actual expenses are higher than budgeted expenses.

Question

Quizplus · Accepted Answer

A favorable variance occurs when actual revenue is higher than budgeted revenue, meaning the company is generating more income than anticipated, which can lead to higher profits.

Identify the Situation Below That Will Result in a Favorable