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Pradeep Thirukumaran
on Oct 23, 2024

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In the accounting recording system, unfavourable variances are recorded in a similar way to revenue and favourable variances are recorded in a similar way to expenses.

Unfavourable Variances

Differences between actual costs and standard or expected costs that negatively impact the financial performance of an organization.

Favourable Variances

Differences between actual and budgeted financial performance that are beneficial to the company, such as lower expenses or higher revenues than planned.

Accounting Recording System

An Accounting Recording System is a structured process for capturing, recording, and summarizing financial transactions, facilitating accurate financial reporting and analysis.

  • Distinguish between positive and negative variances and their impact on financial results.
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Nikki ZimmermannOct 29, 2024
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