Answered: Explain the difference between a…

Business

Accounting

Explain the difference between a favorable and an unfavorable variance.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 21Q: Identify several causes of a favorable material price variance.

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Similar questions

When might an unfavorable variance be a good outcome?
What causes a favorable variance?
What two factors must be considered when breaking down a variance into its components?
What makes a variance favorable? Give an example of a favorable variance involving materials. What makes a variance unfavorable? Give an example of an unfavorable variance involving labor.
Identify several causes of an unfavorable material price variance.
This variance is the difference involving spending more or using more than the standard amount. A. favorable variance B. unfavorable variance C. no variance D. variance
Identify several causes of a favorable material quantity variance.
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Investigating variances from standard is a. always done. b. done if the variance is inside an acceptable range. c. not done if the variance is expected to recur. d. done if the variance is outside the control limits. e. None of these.
When should a standard cost variance be investigated?
Identify several causes of a favorable material price variance.
What are some possible causes of a material quantity variance?