When a manufacturing company uses a standard cost system,an unfavorable variance is a contra expense.

Name: When a manufacturing company uses a standard cost system,an unfavorable variance is a contra expense.
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An unfavorable variance is not considered a contra expense in a standard cost system. It is considered an expense that reflects a difference between the actual cost and the standard cost. A contra expense is a deduction from a revenue account that is used to offset an expense.

When a Manufacturing Company Uses a Standard Cost System,an Unfavorable