Asked by
Jordan McCants
on Nov 19, 2024
Verified
An unfavorable activity variance for revenue indicates that activity was less than expected when the static planning budget was developed.
Unfavorable Activity Variance
This term describes a situation where actual costs exceed the standards or budgeted amounts, leading to a negative variance.
Static Planning Budget
A budget based on a fixed level of activity, without adjusting for any variations in actual performance, useful for initial planning.
- Evaluate the specific conditions that render a variance analysis as either beneficial or harmful.
- Comprehend the importance of modifications in activity level during the variance analysis process.
Verified Answer
AN
Learning Objectives
- Evaluate the specific conditions that render a variance analysis as either beneficial or harmful.
- Comprehend the importance of modifications in activity level during the variance analysis process.
Related questions
Which of the Following May Appear on a Flexible Budget ...
The Activity Variance for Revenue Is Favorable If the Revenue ...
A Revenue Variance Is Unfavorable If the Revenue in the ...
A Revenue Variance Is the Difference Between What the Total ...
When the Activity Measure Is the Number of Units Sold ...