An unfavorable variance is a variance that
A)increases cash relative to the budgeted amount.
B)decreases cash relative to the budgeted amount.
C)increases operating income relative to the budgeted amount.
D)decreases operating income relative to the budgeted amount.

Question

Quizplus · Accepted Answer

An unfavorable variance is a variance that decreases operating income relative to the budgeted amount. It means that actual performance is worse than budgeted performance.

An Unfavorable Variance Is a Variance That