[Rohanie]

I am not getting that answer. Unless I am inputting it wrong into the calculator?
#confused.

[Rohanie]

* If actual costs are greater than standard costs the variance is adverse. An adverse variance tells management that if everything else stays constant the company’s actual profit will be less than planned.

* If actual costs are less than standard costs the variance is favorable. A favorable variance tells management that if everything else stays constant the actual profit will likely exceed the planned profit.

[Author]

Posts