A revenue variance is favorable if the actual revenue exceeds what the revenue should have been for the actual level of activity of the period. True or False

True

Explanation:

Variance is the difference between actual and expected values. Whereas revenue variance is the difference between the Estimated revenue and actual revenue earned by the business.

If the Actual revenue is more than the estimated revenue the variance between them is favorable.

If the Actual revenue is less than the estimated revenue the variance between them is unfavorable.

True

Explanation:

Variance is the difference between actual costs and budgeted or standard costs. Variance is said to be favourable when actual costs exceeds standard costs. When actual costs are less than standard costs, it is adverse. This rule applies to all forms of variance: - Sales, Production, Material, Expenditure, Revenue, labour, fixed and variable overheads, efficiency, volume, capacity and idle time variances.