A favourable price variance occurs whenever the actual prices are greater than the standard prices.

Name: A favourable price variance occurs whenever the actual prices are greater than the standard prices.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A favourable price variance occurs when the actual prices are less than the standard prices, as this means less money was spent than anticipated. If the actual prices are greater than the standard prices, it would result in an unfavorable price variance, as more money was spent than planned.

A Favourable Price Variance Occurs Whenever the Actual Prices Are