A. favourable variance
B. unfavourable variance
C. revenue variance
D. cost variance
✅ The correct answer is option A.
Consideration of increased operating income relative to budgeted amount is classified as favourable variance. A favorable budget variance indicates that an actual result is better for the company (or other organization) than the amount that was budgeted.
Consideration of increased operating income relative to budgeted amount is classified as favourable variance. A favorable budget variance indicates that an actual result is better for the company (or other organization) than the amount that was budgeted.