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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Adverse variances as a negative figure
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
In the spreadsheet, whether the answer is negative or positive do write against it that it is adverse or that it is favourable.
Ok great. Thanks
You are welcome 🙂