Considering the variance analysis, which of the following statements is true?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Considering the variance analysis, which of the following statements is true?

a.
When there is favourable variance the actual profit is higher than the budgeted profit (lower costs than budgeted or higher income than budgeted..
b.
When there is favourable variance the actual profit is lower than the budgeted profit (higher costs than budgeted or higher income than budgeted.
c.
None of the answers provided are true
d.
When there is adverse variance the actual profit is lower budgeted profit (lower costs than budgeted or lower income than budgeted.
e.
When there is adverse variance the actual profit is higher budgeted profit (higher costs than budgeted or lower income than budgeted.
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