Asked by Jenna Hallett on May 21, 2024
Verified
Within the same flexible budget performance report,it is impossible to have both favorable and unfavorable variances.
Favorable Variances
Differences between actual and budgeted or standard costs that result in better-than-expected financial performance.
Unfavorable Variances
Differences where actual costs are higher than standard or expected costs in budgeting.
- Classify variances as either favorable or unfavorable.
Verified Answer
NI
Nikkie ImperialMay 24, 2024
Final Answer :
False
Explanation :
It is possible to have both favorable and unfavorable variances in a flexible budget performance report. For example, a company may have a favorable variance in sales revenue, but an unfavorable variance in production costs.
Learning Objectives
- Classify variances as either favorable or unfavorable.
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