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Earn +20 ptsQ: Is a positive variance favorable
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What difference between a favorable variance and an unfavorable variance?
Favourable variance is that variance which is good for business while unfavourable variance is bad for business
Can additive variance have a negative value?
No. Variance is always positive and so the sum of variances must also be positive.
The difference between variance and standard deviation?
The SD is the (positive) square root of the variance.
A favorable fixed overhead volume variance occurs if?
Favourable fixed overhead variance occurs when actual fixed cost is less than the budgeted fixed overhead expenses.
Why a favorable fixed overhead expenditure variance might be reported?
The price variance might result from use of cheaper but inferior quality materials hence though it will be cheaper , the final product will be compromised .
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