Consideration of increased operating income relative to budgeted amount is classified as

A. favourable variance

B. unfavourable variance

C. revenue variance

D. cost variance

Answer: Option A

Solution(By Examveda Team)

Consideration of increased operating income relative to budgeted amount is classified as favourable variance. A favorable budget variance indicates that an actual result is better for the company (or other organization) than the amount that was budgeted.