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12 September, 17:23

Which type of variance causes operating income to be lower than the budgeted operating​ income?

A) Favorable variance

B) Neutral variance

C) Reverse variance

D) Unfavorable variance

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  1. 12 September, 17:32
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    Answer: Which type of variance causes operating income to be lower than the budgeted operating income? A. Favorable variance.

    Explanation: A favorable variance happens when the actual revenues are larger than what was budgeted or the normal revenue earned. A favorable variance is a positive occurrence whereas an unfavorable variance is a negative occurrence. Having revenues over the expected amount means the business earned more in income than expected.
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