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# Where the actual cost is found to be less than standard cost is known as?

Updated: 12/16/2022

Seffiansafe

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15y ago

favourable variance

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15y ago

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Q: Where the actual cost is found to be less than standard cost is known as?
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### Is Standard Cost same as actual cost?

Standard cost is that cost which is budgeted at start of production while actual cost is that cost which actually incurred by business both of them can be same if actual cost incurred is same as allocated or determined in budgeting process using standard cost otherwise there will be difference.

### What is favourable?

A favorable variance is the difference between the budgeted or standard cost and the actual cost. If the actual cost is less than budgeted or standard cost, it is a favorable variance.

### What is favourable variance?

A favorable variance is the difference between the budgeted or standard cost and the actual cost. If the actual cost is less than budgeted or standard cost, it is a favorable variance.

### Difference between histotical cost and standard cost?

Standard cost is the cost which is basis to measure the actual cost historical cost is the initial cost

prices

### What is cost price variances?

Price variance is the actual unit cost minus the standard unit cost, multiplied by the actual quantity purchased. The variance is said to be unfavorable if the actual price of the materials is higher than the standard price of the materials.

### What is cost variance?

Cost variance means the difference in actual cost from standard cost and very important part of standard costing and budgeting analysis.

Price Variance

### The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the?

The difference between actual quantity and standard quantity is called the material quantity variance.

### What do you mean by labor cost variance?

Labor cost variance means the difference between standard labor cost and actual labor cost.

### What is the difference between variable overheads cost variance andfixed overheads cost variance?

Variable overhead cost variance is that variance which is in variable overheads costs between the standard cost and the actual variable cost WHILE fixed overheads cost variance is variance between standard fixed overhead cost and actual fixed overhead cost.