Asked by
Intisher Chowdhury
on Nov 19, 2024
Verified
A revenue variance is unfavorable if the revenue in the static planning budget is less than the revenue in the flexible budget.
Revenue Variance
The difference between the actual revenue earned and the budgeted or expected revenue.
Static Planning Budget
A budget based on a single level of output, not adjusted for changes in activity levels.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity levels, allowing for better budget-to-actual comparisons.
- Identify the instances where analysis of variance results in either positive or negative implications.
Verified Answer
AR
Learning Objectives
- Identify the instances where analysis of variance results in either positive or negative implications.
Related questions
Which of the Following May Appear on a Flexible Budget ...
A Revenue Variance Is the Difference Between What the Total ...
An Unfavorable Activity Variance for Revenue Indicates That Activity Was ...
The Activity Variance for Revenue Is Favorable If the Revenue ...
When the Activity Measure Is the Number of Units Sold ...