Asked by Jennifer Guillen on Jul 21, 2024
Verified
Explain how favorable and unfavorable variances impact income.
Unfavorable Variances
Occurrences when actual costs exceed budgeted or expected costs, indicating a potential need for management action to address inefficiencies.
Favorable Variances
Differences between actual and budgeted amounts that result in more profit or less cost than originally planned.
Income
Money received, especially on a regular basis, for work, through investments, or from business activities.
- Analyze the effects of favorable and unfavorable variances on income.
Verified Answer
DR
Deanna ReynoldsJul 24, 2024
Final Answer :
Favorable variances contribute to a higher income.Unfavorable variances contribute to lower income.
Learning Objectives
- Analyze the effects of favorable and unfavorable variances on income.