Account 2016 2017 2018 Other Expenses $4 500 $4 000 $3 900 The trend in Other Expenses is

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To evaluate the trend, I will examine the numbers for Other Expenses across the three years: 2016 = 4500, 2017 = 4000, 2018 = 3900.

Option a: decreasing unfavourably. This would imply that expenses are decreasing and that decrease is bad for the business. However, lower expenses typically indicate improved efficiency or cost control, which is generally favourable, not unfavourable, unless there is an underlying issue causing the drop. So this option is not the best description of the trend.

Option b: increasing favourably. The data clearly show a decrease in expenses from 2016 to 2018, not an increase. Therefore this statement contradicts the observed numbers.

Option c: decreasing favourably. The expenses fall from 4500 to 4000 to 3900, which is a downward trend. In most accounting contexts, reducing expenses is considered favourable because it improves net income, assuming revenue remains constant. This aligns with the observed pattern.

Option d: increasing unfavourably. Since the numbers do not show an increase, this option does not describe the data. It would be incorrect given the actual downward trend.

Overall, the evidence shows a downward trend in Other Expenses over the three years, and such a reduction is generally regarded as favourable for financial performance. The phrasing in option c best captures both the direction (decreasing) and the evaluative judgment (favourably).

MUF0022 Accounting Unit 2 - Semester 2, 2025 Quiz: Trends, Variances & Benchmarks

Account 2016 2017 2018 Other Expenses $4 500 $4 000 $3 900 The trend in Other Expenses is

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