The following statements are based upon your knowledge of the budgeting process. Please check only those answers that are TRUE.

A-If the actual cost incurred for the Theatre's rent is greater than the amount in the flexible budget, the variance is unfavorable.

BThe number of cost drivers used to prepare a budget is limited to three.

C-If a company's actual net operating income is greater than net income in the budget, the total overall revenue and spending variance will be favorable.

D-If a variance is favorable, and significant in amount, it may be ignored.