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Hi, is there any guidance for deciding when an operational or planning variance is favourable or adverse. While I always get the calculations right It is difficult to determine whether the variance is favourable or adverse.
For. e.g if the revised is less than the actual for operational is it adverse or vice versa and if the original is more/less than the revised for planning is it Adverse of favourable?
Please help. I always get the calculations but can’t figure out (F) or (A)
Thank you.
A planning price/quantity variance is ADVERSE if the revised standard price/quantity is higher than the original standard price/quantity.
An operational price variance is FAVOURABLE if the actual cost is less than the revised
standard cost.
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@kim2311 said:
A planning price/quantity variance is ADVERSE if the revised standard price/quantity is higher than the original standard price/quantity.
An operational price variance is FAVOURABLE if the actual cost is less than the revised
standard cost.Thanks
sorry my question may not be related to subject matter. Of the paper and computer base which is easier to pass?
It would indeed have been better to ask this on a new post as new questions on unrelated posts are easily overlooked. Given that the technical content of CBE and paper-based are the same and ACCA takes every measure to ensure that students are not disadvantaged by sitting one format rather than the other, neither should be considered easier.
ACCA could not have removed paper exams if it were otherwise. (See here to confirm availability of CBE and withdrawal of paper option
https://www.accaglobal.com/uk/en/student/exam-entry-and-administration/computer-based-exams/f5-f9-session-cbes-what-you-need-to-know/where-you-can-take-session-cbes-new.html)
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