The activity variance for revenue is unfavorable if the actual level of activity for the period is less than the planned level of activity.

Question

Quizplus · Accepted Answer

An unfavorable activity variance for revenue occurs when the actual level of activity is less than the planned level of activity. This means that revenue falls short of the expected amount, resulting in a negative variance. If the actual level of activity exceeds the planned level of activity, then the activity variance for revenue is favorable (a positive variance).

The Activity Variance for Revenue Is Unfavorable If the Actual