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CTP · Question #28
(Topic 1) At the end of the year, ABC Company's actual revenue is $85,000,000 versus budget revenue of $90,000,000. Actual operating expenses are $20,000,000 versus budget operating expenses of…
The correct answer is C. unfavorable revenue variance and a favorable operating expenses variance. See the full explanation below for the reasoning.
Question
- (Topic 1)
At the end of the year, ABC Company’s actual revenue is $85,000,000 versus budget revenue of $90,000,000. Actual operating expenses are $20,000,000 versus budget operating expenses of $22,000,000. Budget variance analysis would indicate a(n):
Options
- Afavorable revenue variance and an unfavorable operating expenses variance.
- Bfavorable revenue variance and a favorable operating expenses variance.
- Cunfavorable revenue variance and a favorable operating expenses variance.
- Dunfavorable revenue variance and an unfavorable operating expenses variance.
How the community answered
(39 responses)- A8% (3)
- B3% (1)
- C85% (33)
- D5% (2)
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