TB MC Qu. 16-24 (Static) Which of the following statements is(are)... Which of the following statements isare) true? (A) A favorable variance is not necessarily good, and an unfavorable variance is not necessarily bad. (B) The master budget includes operating budgets (e.g.. production budget) and financial budgets (e.g.. cash budget). Multiple Choice Only B is true Both of these are true. Only A is true Neither of these is true. The difference between operating profits in the master budget and operating profits in the flexible budget is called the: Multiple Choice sales activity variance production volume variance. flexible budget variance o total operating profit variance In general, the terms favorable and unfavorable are used to describe the effect of a variance on: Multiple Choice operating expenses. sales revenue operating profits production costs