Question

When compared to the budgeted amount, if the actual cost or revenue contributes to a higher income, then the variance is considered.

Answer 1

If the actual cost or revenue leads to a higher income than the budgeted income, then the variance is Favorable.

Why is the variance favorable?

A variance related to income is considered to be favorable when the actual amount is greater than the budgeted amount because more income than was anticipated would have been realized.

If the actual revenue or cost therefore lead to a higher income than the budget said, this is favorable.

Find out more on favorable variances at https://brainly.com/question/15992453.