If actual costs are less than budgeted costs then the variance will be:
A) favourable
B) unfavourable
C) immaterial
D) b and c

Question

Quizplus · Accepted Answer

When actual costs are less than budgeted costs, it indicates that spending was less than what was planned or expected, which is generally considered a positive outcome or favorable variance. This means the organization has spent less than anticipated, potentially leading to higher profits or savings.

If Actual Costs Are Less Than Budgeted Costs Then the Variance