An unfavorable variance occurs on a performance report when ________.

Question

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An unfavorable variance occurs when the actual revenue is less than the budgeted revenue or when the actual cost exceeds the budgeted cost. This means that the company is not performing as well as it had planned, and there may be financial or operational issues that need to be addressed. Choices A, B and C all indicate favorable variances, where the actual performance is better than the budgeted performance.

An Unfavorable Variance Occurs on a Performance Report When ________