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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
What is budget variance?
A budget "variance" is the difference between planned and actual performance.
If Favorable outcomes is equal to the number of unfavorable outcomes?
It can be. So what?
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 Budget variance be negative?
Yes
Why would a favorable price variance for material might be the cause of unfavorable quantity variance?
A favorable/unfavorable price variance does not effect your quantity variance. The reason you would see a favorable price variance and an unfavorable quantity variance is because you consumed more materials than your standard allows AND the price you paid for those material was less than your standard price. If you paid more than your standard price, you would have experienced an unfavorable variance in both quantity and price.
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
The activity variance for revenue is unfavorable if the actual revenue for the period is less than the revenue in the static planning budget true or false?
true
How does a seed sprouts under a favorable and unfavorable condition?
It is called in favorable conditions Germination and is unfavorable Dormant
What are 5 favorable and 5 unfavorable gestures in communication?
what are 5 favorable and 5 unfavorable gestures in commution?
Does the US have a favorable or unfavorable balance of trade?
Favorable
How do you calculate a budget variance as a percentage?
actual budget/budget = variance%
A favorable spending variance occurs when the actual cost is less than the amount of that cost in the flexible budget true or false?
True
How do you calculate budget variance percentage?
Variance = 100*(Actual - Budget)/Budget
Favorable materials quanity variance?
In cost accounting, a variance is the difference between what we expected to happen (what we planned for when we created the budget) and what actually happened. If we produce more units from a given quantity of raw material than we expected to produce when we set up the budget, we have a favorable materials quantity variance, because we produced the goods more efficiently than we had planned for. We have used the raw materials with less waste than expected.
How to calculate the Budget variance percentage?
how to calculate budget variance percentage?
When would a variance be labeled as favorable?
a
