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Examveda

Consideration of decreased operating income relative to budgeted amount in static budget is classified as

A. revenue variance

B. cost variance

C. favourable variance

D. unfavourable variance

Answer: Option D

Solution(By Examveda Team)

Consideration of decreased operating income relative to budgeted amount in static budget is classified as unfavourable variance. 'Unfavorable variance' is an accounting term that describes instances where actual costs are greater than the standard or expected costs.

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