Which of the following statements is(are) true?
(A) A favorable variance is not necessarily good, and an unfavorable variance is not necessarily bad.
(B) The master budget includes operating budgets (e.g., production budget) and financial budgets (e.g., cash budget).
A) Only A is true.
B) Only B is true.
C) Both of these are true.
D) Neither of these is true.

Question

Quizplus · Accepted Answer

A favorable variance might not be good if it results from unrealistic standards or cuts that harm quality, and an unfavorable variance might not be bad if it leads to long-term benefits. The master budget indeed includes both operating and financial budgets.

Which of the Following Statements Is(are) True