Select the statement that best distinguishes between a favorable variance and an unfavorable variance.

A.

A favorable variance does not require management to investigate the cause of the variance. An unfavorable variance always requires management to investigate the cause of the variance.

B.

A favorable variance has a result of increasing operating income relative to the budgeted amount. An unfavorable variance has a result of decreasing operating income relative to the budgeted amount.

C.

A favorable variance has a result of increasing the account balance (regardless of the account type) relative to the budgeted amount. An unfavorable variance has a result of decreasing the account balance relative to the budgeted amount.

D.

A favorable variance has a result of increasing sales revenue relative to the budgeted amount. An unfavorable variance has a result of decreasing variable costs relative to the budgeted amount.