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Adverse variances as a negative figure

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Adverse variances as a negative figure

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • September 3, 2020 at 9:05 pm #583302
    yapok
    Participant
    • Topics: 6
    • Replies: 6
    • ☆

    Hi John,

    Firstly thank you for the great lectures. I have a question regarding calculating variances (of any type) on the spreadsheet for the C Section questions:
    I have been copying the formula down for the individual product variances (ie cell B3-C3, B4-C4 etc) which gives adverse variances as a negative figure. I then sum all the individual variances to give the total variance, postive figure if favorable, negative figure if adverse.
    I have noticed that in your lectures you only write adverse variances as a positive figure so is what I am doing incorrect? Should I deduct the favorable variances from the adverse to arrive at the net total (and vice versa)?
    I understand it will produce the same figure, but is it ok to write adverse variances as a negative figure?
    Many thanks

    September 4, 2020 at 9:53 am #583365
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    In the spreadsheet, whether the answer is negative or positive do write against it that it is adverse or that it is favourable.

    September 5, 2020 at 8:12 pm #583609
    yapok
    Participant
    • Topics: 6
    • Replies: 6
    • ☆

    Ok great. Thanks

    September 6, 2020 at 10:25 am #583649
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Adverse variances as a negative figure’ is closed to new replies.

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