Asked by
Kathy Mellivo
on Oct 15, 2024
Verified
An unfavorable variance is recorded with a debit because it reflects additional costs higher than the standard cost.
Unfavorable Variance
A financial term describing a situation where actual costs exceed budgeted or planned costs.
Standard Cost
A predetermined cost of manufacturing a product or providing a service, used as a benchmark to measure performance and efficiency.
- Differentiate between favorable and unfavorable variances and understand their financial implications.
Verified Answer
JL
Learning Objectives
- Differentiate between favorable and unfavorable variances and understand their financial implications.
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