In general, the terms favorable and unfavorable are used to describe the effect of a variance on:
A) operating profits.
B) sales revenue.
C) production costs.
D) operating expenses.

Question

Quizplus · Accepted Answer

Variances are typically analyzed in terms of their impact on operating profits, with favorable variances indicating a positive effect and unfavorable variances indicating a negative effect on profits.

In General, the Terms Favorable and Unfavorable Are Used to Describe