Use the following information for the next 5 questions.
At the end of 20x1, SWP Corporation prepared its master budget for 20x2. Selected amounts from that budget, along with actual results for 20x2, are presented below:
-Which items in the table have favorable variances?
A) Sales and marketing expense
B) Cost of goods sold and sales
C) Sales and research and development expense
D) Sales and interest revenue

Question

Use the following information for the next 5 questions.
At the end of 20x1, SWP Corporation prepared its master budget for 20x2. Selected amounts from that budget, along with actual results for 20x2, are presented below: 
-Which items in the table have favorable variances?
A) Sales and marketing expense 
B) Cost of goods sold and sales 
C) Sales and research and development expense 
D) Sales and interest revenue

Quizplus · Accepted Answer

Favorable variances occur when actual revenues are higher than budgeted or when actual expenses are lower than budgeted. Sales being higher and research and development expenses being lower than expected would both be considered favorable variances.

Use the Following Information for the Next 5 Questions