Ask Question
2 March, 03:14

A favorable cost variance occurs when a. actual costs are more than standard costs b. standard costs are more than actual costs c. actual costs are the same as standard costs d. standard costs are less than actual costs

+1
Answers (1)
  1. 2 March, 04:14
    0
    b. standard costs are more than actual costs

    Explanation:

    There are mainly two types of cost variance.

    1. Favorable variance

    2. Unfavorable variance

    When the standard cost is more than the actual cost then it said to be favorable variance. And when the standard cost is less than the actual cost then it said to be unfavorable variance which can impact the cost overall

    So the correct option is b.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A favorable cost variance occurs when a. actual costs are more than standard costs b. standard costs are more than actual costs c. actual ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers