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Forums › ACCA Forums › ACCA MA Management Accounting Forums › Standard costing-Variance calculations and analysis
Hi,Sir.
I am still don’t understand when is the situations is adverse,and when is favorable?i am quite confusing with this two elements?Can you please give me the example,and make me clear about it?
Kindly reply,
Thank you.
Hi,can anyone please teach me how to know whether the situation is favorable or adverse?Can someone please give me the example?
If the difference results in more profit (because, for example, the actual cost is lower than standard) then the variance is favourable.
If the difference results in less profit (because, for example, the actual cost is higher than standard) then the variance is adverse.
Have you watched the free lecture on here? If not then it would be a good idea to.