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3) A favorable variance indicates which of the following outcomes?
A. A favorable variance has the effect of decreasing individual variable costs.
B. A favorable variance has the effect of increasing operating income relative to the budgeted amount.
C. A favorable variance has the effect of increasing the static budget variance.
D. A favorable variance has the effect of increasing output relative to the previous budget cycle.
E. A favorable variance has the effect of decreasing operating income relative to the budgeted amount.
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