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A revenue variance is unfavorable if the actual revenue is less than what the revenue should have been for the actual level of activity for the period true or false?
TRUE
Reading as a human activity?
Reading is a human activity. In economic terms, it needs to be linked with profit/revenue maximization, which is very unlikely to happen.
What is the chief economic activity of the southern Pacific coast of Mexico?
Agriculture is the economic activity that employs the majority of people, but tourism generates the largest revenue.
What is business profit?
Profit is revenue, generated through sale of products and services, minus the costs of producing/distributing those products and services. When the revenue generated in a period of time exceeds the company's costs, the company has achieved a profit. If the costs incurred by the company exceed the revenue generated in a period of time, the company has a loss.
Do taxes count in GDP calculations?
Yes, taxes are included in GDP calculations as they represent government revenue and are considered a part of the overall economic activity within a country.
A revenue variance is unfavorable if the actual revenue is less than what the revenue should have been for the actual level of activity for the period true or false?
TRUE
Is a positive variance always favorable?
A positive variance is not always favorable; it depends on the context. In financial terms, a positive variance in revenue indicates better-than-expected performance, which is favorable. However, a positive variance in expenses could mean costs are higher than budgeted, which is unfavorable. Thus, assessing whether a positive variance is favorable requires understanding the specific metrics and their implications.
What is adverse variance?
A non favourable variance Eg: adverse revenue means the company earned less revenue than expected.
How do you calculate Total revenue variance?
total revenue variance = actual revenue - standard revenue Total revenue variance (AQ x AP) - (SQ x SP) where AQ is actual quantity (units of service sold), AP is actual price (actually recorded as revenue), SQ is standard quantity, and SP is standard price
How are variance reports used?
Variance reports are used to analyze the difference between planned and actual performance in various business metrics, such as budget, revenue, or production output. They help organizations identify discrepancies, assess the reasons behind these differences, and implement corrective actions. By providing insights into operational efficiency and financial health, variance reports enable better decision-making and strategic planning. Ultimately, they serve as a tool for continuous improvement and performance management.
What is called the difference between the value that an activity generates and the cost of the activity?
revenue
What dollar amount of the total variance is attributed to Enrollment Variance?
To determine the dollar amount of total variance attributed to Enrollment Variance, you would need to calculate the difference between the actual enrollment figures and the budgeted or expected figures, then multiply that difference by the revenue or cost per enrollment. This will yield the Enrollment Variance in dollar terms. The exact amount can only be provided with specific enrollment and financial data.
What does a sales volume variance measure?
A sales volume variance measures the difference between the actual quantity of units sold and the budgeted quantity of units sold, multiplied by the standard selling price. It indicates the impact of changes in sales volume on a company's revenue and is used to assess the effectiveness of sales strategies and forecasts.
Are unfavorable variances credits or debits?
For most accounting entities in the United States, variances are neither debits nor credits, because variances are not recorded on the books of a business. A variance is simply the difference between what we expected the business to earn or spend and what it actually did earn or spend. Only the things that actually did happen are recorded on the books. But the amount we had expected to earn at the beginning of the year can be found in the budgets, forecasts or plans we created for the year when we set up budgets for the year. The difference between what we budgeted for and what actually happened is called the variance from budget. For example, if at the beginning of 2008, we projected that we would have total sales of $5 million dollars for the entire year, but twelve months later, we found that we had had only $4 million in sales in 2008, there is a variance of $1 million dollars, and it is unfavorable, because we actually had less sales revenue than we thought we would earn at the beginning of the year. But if our actual sales for 2008 totalled $6 million, the variance would still be $1 million, but it would be a favorable variance, because we made $1 million more in sales ($6 million) than we originally thought we would (5% million). If actual expenses are higher than the budgeted amount, the difference between the two amounts is an unfavorable variance, because we spent over budget, which reduces our profits. However, if actual expenses are lower than the budgeted amount, the difference is a favorable variance, because we were able to spend less than we thought we would have to, and our profits would be higher.
What is the difference between total revenue and operating revenue?
Operating revenue is revenue generated from prime activity of business, or the typical activity that is reoccurring in nature. on the other hand Non Operating revenue is the revenue from source that is not related to the typical activity of business. It may include gain from investment (if organization is not itself a financial institution) , gain from property or by selling some asset or gain from currency exchange. Total Revenue is the sum of both Operating revenue and non operating revenue. For example: Abc Co manufacture furniture, the revenue from selling furniture is $50000 and it also sell its one of its property at $45000 that ABS Co bought several years ago for $40000. .. operating revenue---------= $50000 non operating revenue(45000-40000)= $ 5000 total revenue (50000+5000) $ 55000
What is the difference between cost and revenue?
Revenue is the profit made from an activity, while cost is the price something is.
What is the difference between operating revenue and non operating revenue?
Operating revenue is that revenue which is earned by basic operating activity of business while non operating profit is earned from other activities like purchases of marketable securities etc.
