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    Question

    A company has an actual sales of ₹25 crore vs. a

    budget of ₹30 crore. Costs were below budget by ₹2 crore. What does this imply?
    A Favourable sales variance Correct Answer Incorrect Answer
    B Adverse cost variance Correct Answer Incorrect Answer
    C Overall performance adverse Correct Answer Incorrect Answer
    D Adverse sales variance but favourable cost variance Correct Answer Incorrect Answer

    Solution

    Sales < Budget = Adverse Sales Variance; Cost < Budget = Favourable Cost Variance

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