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In the period in question, the budget for staff overtime and bonuses is zero.
The actual expenditure is 2,900.
Is this variance:
Suggested Answer: C
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The variance is adverse - more was spent than budgeted - this is not favourable.
5 comments · newest first
IS
Isreal
4 days ago
That's definitely adverse.
AL
Alecia
9 days ago
If the budget is zero and we spent 2,900, it definitely sounds like a negative variance, so I’m leaning towards C) Adverse.
DE
Delisa
14 days ago
I’m a bit confused because I thought "averse" and "adverse" were the same, but I guess it’s about the context here.
BA
Barrie
19 days ago
I remember a practice question where we discussed variances, and I think if we exceed the budget, it’s usually considered adverse.
LA
Lavonne
24 days ago
I think the actual expenditure being higher than the budget means it's not favorable, but I'm not sure if it's called adverse or averse.