A favorable cost variance occurs when actual costs are more than standard costs standard costs are more than actual costs standard costs are less than actual costs actual costs are the same as standard costs

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Business

Bridget Ortiz

27 October, 01:25

A favorable cost variance occurs when actual costs are more than standard costs standard costs are more than actual costs standard costs are less than actual costs actual costs are the same as standard costs

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Makai Richardson · Answer 1

A favorable cost variance occurs when: Standard costs are more than actual costs

Standard cost refers to the cost that projected to happen when acquiring an asset. Meanwhile, actual cost refers to the total cost that actually happens when acquiring that asset.