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The comparison of budget to actual for the gassoline budget of Nice Lawn Mainterance Ca. Inad an unfovorable activity vaiance af $900.coo, and in residentlal
The comparison of budget to actual for the gassoline budget of Nice Lawn Mainterance Ca. Inad an unfovorable activity vaiance af $900.coo, and in residentlal customers. The company managers think of "unfavorable" as beling something bod and to be avoided and or correctert Howevec opon heruing this the CFO has explained to management that the activity budget is actually an indicator of "favorable" results. Why did she say ths?" Muatiple Crioice The activity voriance is significantly less than the spending varkance, and trat is awoys a fweroble event. Explaining an unfavorable budget to management as a fovorable evert is necessary becaine monagoment by orcepoon ropuares thes explanation. There is an unfavorable activity variance, howovec if was coused by more lawns being cut than were criginally bucgeked. Ths inciease in lawris cut is actually fovorable to the company
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