Which type of variance causes operating income to be lower than budgeted?
A)Favorable variance
B)Neutral variance
C)Unfavorable variance
D)Reverse variance

Name: Which type of variance causes operating income to be lower than budgeted? A)Favorable variance B)Neutral variance C)Unfavorable variance D)Reverse variance
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Question

Quizplus · Accepted Answer

An unfavorable variance is one where actual results are less favorable than budgeted results, and can result in lower operating income.

Which Type of Variance Causes Operating Income to Be Lower