A favorable variance causes operating income to be _______________ the budgeted operating income?
A)lower than
B)equal to
C)greater than
D)half as much as

Question

Quizplus · Accepted Answer

A favorable variance means that actual performance exceeded budgeted performance, which usually results in higher operating income than the budgeted amount. Therefore, operating income will be greater than the budgeted operating income.

A Favorable Variance Causes Operating Income to Be _______________ the Budgeted