The consideration of increased operating income relative to budgeted amount is classified as ____________?
Correct answer: A. favorable variance
- A. favorable variance
- B. unfavorable variance
- C. revenue variance
- D. cost varianceCompare Credit Cards
Explanation
Operating income above the budget is favorable because actual profitability exceeded the planned amount. An increase in income is favorable even if it results from different revenue or cost variances.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
If the actual price input is $700, the budgeted price of input is $400 and the actual quantity of input are 50 units, then the price variance will be ___________?
The standard input allows one unit, to be divided by standard cost per output unit, for variable direct cost input to calculate ___________?
The consideration of decreased operating income relative to budgeted amount, in static budget is classified as ____________?
The determined price at which the company expects to pay for every single unit is called ___________?
In the budget hierarchy, the material handling cost is ___________?
Static budget variance for operating income is added in to static budget amount to calculate __________?