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The comparison of budget to actual for the gasoline budget of Nice Lawn Maintenance Co. had an unfavorable activity variance of $900000, and an unfavorable
The comparison of budget to actual for the gasoline budget of Nice Lawn Maintenance Co. had an unfavorable activity variance of $900000, and an unfavorable spending variance of $1.200.000. Nice Lawn Maintenance is a grass cutting and lawn maintenance company that provides services to residential customers. The company managess think of "unfavorable" as being something bad and to be avoided and or cortected Howevet, upon hearing this the CFO has explained to management that the activity budget is actually an indicator of "favorable" results. Why did she say this? Minple crice The untavolable activity variance is to be expected because gasoline prices wont down sigrificanty dirng the period and that is o good thing actiaisy fmorable to she coityoany
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