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Earn +20 ptsQ: Can Budget variance be negative
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What is budget variance?
A budget "variance" is the difference between planned and actual performance.
What factors causes Budget Variance?
There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance
Can standard deviation and variance be negative?
No. Neither the standard deviation nor the variance can ever be negative.
Is it possible to have a negative variance?
No.
Can additive variance have a negative value?
No. Variance is always positive and so the sum of variances must also be positive.
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