In general,the terms favorable and unfavorable are used to describe the effect of a variance on:
A) net income.
B) sales revenue.
C) production costs.
D) operating expenses.

Question

Quizplus · Accepted Answer

Favorable and unfavorable variances are typically used to describe the effect on net income. Variance analysis is a tool used by management accountants to identify and analyze the causes of differences between the planned or budgeted amounts and the actual amounts incurred. The analysis helps managers make informed decisions to control costs and improve performance. Typically, favorable variances are those that increase net income or decrease costs, while unfavorable variances reduce net income or increase costs.

In General,the Terms Favorable and Unfavorable Are Used to Describe