What does a favourable variance indicate?
Variant question
A)Actual revenues exceed budgeted revenues
B)The actual amount decreased operating profit relative to the budgeted amount
C)Budgeted costs are less than actual costs
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

A favourable variance indicates that actual revenues are higher than budgeted revenues, which is a positive outcome for a business. Choices B and C describe unfavorable variances, where costs are higher than expected or profits are lower.

What Does a Favourable Variance Indicate