Variances are labeled as
A)avoidable or unavoidable.
B)favorable or unfavorable.
C)spending or efficiency.
D)committed or discretionary.

Question

Quizplus · Accepted Answer

Variances are commonly labeled as favorable or unfavorable depending on whether actual results are better or worse than expected. This provides a quick way for management to identify areas that need attention. While variances can also be analyzed in terms of their underlying causes and whether they are avoidable or unavoidable, spending or efficiency, and committed or discretionary, the favorable or unfavorable label is the most commonly used.

Variances Are Labeled as