Variances are labeled as
A)Avoidable or unavoidable.
B)Favorable or unfavorable.
C)Positive or negative.
D)Committed or discretionary.

Question

Quizplus · Accepted Answer

Variances are typically labeled as favorable or unfavorable because they indicate whether actual results are better or worse than expected. This helps managers to identify areas where performance can be improved and to take corrective action to address any issues. The other options (avoidable or unavoidable, positive or negative, committed or discretionary) are not generally used to label variances.

Variances Are Labeled as