A favorable variance is a variance that increases the flexible budget amount relative to the static budgeted amount.

Name: A favorable variance is a variance that increases the flexible budget amount relative to the static budgeted amount.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A favorable variance occurs when actual results are better than expected, meaning costs are lower or revenues are higher than the budgeted amounts, not when the flexible budget amount increases relative to the static budget.

A Favorable Variance Is a Variance That Increases the Flexible