An example of a favorable variance is _____.
A)actual revenues are less than expected
B)actual expenses are less than expected
C)material prices are greater than expected
D)expected labor costs are less than actual costs

Question

Quizplus · Accepted Answer

A favorable variance means that the actual results are more positive than the expected results. In this case, if actual expenses are less than expected, it means that the company was able to save costs and the variance is favorable.

An Example of a Favorable Variance Is _____