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.Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
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