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jasmine rabah
on Nov 17, 2024

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A favorable cost variance occurs when

A) actual costs are more than standard costs
B) standard costs are more than actual costs
C) standard costs are less than actual costs
D) actual costs are the same as standard costs

Cost Variance

The difference between the actual cost incurred and the standard or budgeted cost, used in budgeting and financial analysis.

Standard Costs

Predetermined costs to manufacture a product, serving as a benchmark for measuring performance.

Actual Costs

The real costs incurred by a business during a specific period, as opposed to budgeted or forecasted costs.

  • Comprehend the computation and elucidation of favorable and unfavorable variances.
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CS
Carrington SmithNov 19, 2024
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