Asked by
Emily Becker
on Oct 10, 2024
Verified
A revenue variance is unfavorable if the revenue in the static planning budget is less than the revenue in the flexible budget.
Revenue Variance
The difference between actual revenue and budgeted or forecasted revenue, indicating the performance of a business.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting in variable operational conditions.
- Gain an understanding of the distinction between favorable and unfavorable variances in the context of managing revenues and costs.
Verified Answer
CN
Learning Objectives
- Gain an understanding of the distinction between favorable and unfavorable variances in the context of managing revenues and costs.
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