When compared to the budgeted amount, if the actual cost or revenue contributes to a lower income, then the variance is considered

The situation you're describing pertains to variance analysis in budgeting. In this context, when actual costs or revenues lead to lower income compared to the budgeted amounts, the variance is typically classified as a "negative variance" or "unfavorable variance."

1. Negative Variance: This occurs when the actual costs are higher than what was budgeted (leading to lower profits) or when actual revenues are lower than expected.

2. Unfavorable Variance: This term is also used interchangeably with negative variance to reflect that the company's financial performance is worse than anticipated.

Both terms serve to indicate that despite expectations, the financial outcomes did not align positively with the budget, thus impacting overall performance negatively. This analysis is crucial for management to understand discrepancies between projected and actual financial outcomes, enabling informed decision-making for future budgetary adjustments.