Which of the following is true? Multiple Choice If a company has an unfavorable spending variance, it must have an unfavorable price variance. If a company has a favorable spending variance, it may have a favorable or unfavorable rate variance. If a company has a favorable quantity variance, it will have a favorable price variance. If a company has an unfavorable efficiency variance, it spent more per labor hour than budgeted.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Which of the following is true?
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If a company has an unfavorable spending variance, it must have an unfavorable price variance.
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If a company has a favorable spending variance, it may have a favorable or unfavorable rate variance.
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If a company has a favorable quantity variance, it will have a favorable price variance.
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If a company has an unfavorable efficiency variance, it spent more per labor hour than budgeted.
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