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.This Question Belongs to Management >> Management Accounting
Join The Discussion