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The budget for procurement staff costs is 100,000 but only 90,000 has been spent in the period. This has resulted in substantial further work for procurement staff members, sometimes working into the evening or at weekends.
Suggested Answer: D
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As less has been spent than budgeted, the variance is favourable.
27 comments · newest first
GR
Gregoria
2 days ago
I think it's adverse. More work means stress.
DE
Desirae
7 days ago
Adverse for sure. Quality of work might drop with overwork.
JE
Jerrod
12 days ago
Favorable on paper, but not for morale.
JO
Joanna
17 days ago
Definitely adverse. Staff burnout is a serious issue.
ST
Stanford
23 days ago
I see it as favorable. Budget under spent, but at what cost?
MY
Myra
28 days ago
I agree, it's adverse. Spending less but working more isn't good.
JA
Jamal
1 month ago
I think it's adverse. More work means stress.
BR
Brittani
1 month ago
I see both sides, but adverse feels more accurate.
DA
Danica
1 month ago
Definitely adverse. Money saved doesn't equal happy staff.
AN
Anna
2 months ago
But the staff is overworked. That's not good.
BR
Breana
2 months ago
Favourable sounds right. They saved money, right?
DO
Dorsey
2 months ago
I agree, adverse. Budget not fully used but workload increased.
SE
Sena
2 months ago
I think it's adverse. More work means stress.
CR
Cruz
2 months ago
Sounds like a classic case of mismanagement.
SV
Svetlana
2 months ago
Wait, how is this favorable if they're overworked?
TH
Thurman
3 months ago
But the extra work isn't ideal...
DO
Dorothy
3 months ago
Definitely a favorable variance!
PR
Precious
3 months ago
That's a $10,000 surplus.
DE
Devora
3 months ago
I disagree, it's favorable if they saved money.
MA
Marisha
3 months ago
Surprised they didn't spend the whole budget!
CA
Carline
4 months ago
I think it's adverse since they're overworked.
BR
Bronwyn
4 months ago
But the extra work isn't a good sign.
AL
Alyce
4 months ago
That's a $10,000 surplus!
JA
Janae
4 months ago
I feel like I should lean towards "adverse" since the staff is struggling, but I'm not completely confident about that choice.
ST
Stanford
4 months ago
This reminds me of a practice question where we analyzed budget variances, but I can't recall if "none of the above" could apply here.
FL
Florinda
4 months ago
I think if the staff is overworked, it might indicate an adverse situation, even if the budget is under spent.
LO
Lore
6 months ago
I remember we discussed variances in class, but I'm not sure if spending less than the budget is always favorable.