In general,and holding all other things constant,an unfavorable variance decreases operating profits.

Name: In general,and holding all other things constant,an unfavorable variance decreases operating profits.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An unfavorable variance means that the actual costs or revenues are higher or lower than the budgeted amount, which negatively affects the operating profits. This results in a decrease in profits compared to what was expected or budgeted, hence making the statement true.

In General,and Holding All Other Things Constant,an Unfavorable Variance Decreases