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 A and B are false.
D) Neither A nor B is false.

Question

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 A and B are false.
D) Neither A nor B is false.

Quizplus · Accepted Answer

Both statements are true. An unfavorable variance typically decreases operating profits, and variances can be misleading as favorable ones might not always be beneficial and unfavorable ones might not always be detrimental.

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