A favorable variance in one area might be offset by
A) Favorable variance in another area
B) Unfavorable variance in another area
C) Increase in period costs
D) Decrease in period costs

Question

Quizplus · Accepted Answer

A favorable variance in one area can be offset by an unfavorable variance in another area, as both variances affect the overall performance and financial results of the company. The other choices, such as an increase or decrease in period costs, may or may not be related to the variances and do not necessarily offset them.

A Favorable Variance in One Area Might Be Offset by