Which of the following is true A Unfavorable variances shoul

Which of the following is true?

A.

Unfavorable variances should always be interpreted as \"bad news\" for the company.

B.

Management by exception means that managers investigate all unfavorable variances but not all favorable variances.

C.

Favorable variances should always be interpreted as \"good news\" for the company.

D.

Favorable variances are variances that cause operating income to be higher than budgeted.

Solution

Favorable variances are variances that cause operating income to be higher than budgeted Option D is correct