A favorable spending variance occurs when the actual cost is less than the amount of that cost in the flexible budget.

Question

Quizplus · Accepted Answer

This statement is true. A favorable spending variance refers to a situation where actual costs are less than the amount of that cost in the flexible budget. This means that the organization has saved money and has the potential to increase profits or allocate these savings to other areas.

A Favorable Spending Variance Occurs When the Actual Cost Is