An unfavourable variance between budgeted and actual data may indicate:
A)Poor performance.
B)Budget estimates were set at an unrealistic or unachievable level.
C)The estimation of future activity levels and the associated potential costs and revenues is incorrect and inaccurate.
D)All of the options are correct.

Question

Quizplus · Accepted Answer

An unfavourable variance between budgeted and actual data can indicate poor performance, unrealistic or unachievable budget estimates, and incorrect estimation of future activity levels and associated costs and revenues. Therefore, all of the options are correct.

An Unfavourable Variance Between Budgeted and Actual Data May Indicate