An unfavorable cost variance will be debited to a cost variance account.

Name: An unfavorable cost variance will be debited to a cost variance account.
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Question

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An unfavorable cost variance, which represents an increase in cost compared to the expected cost, will be debited to a cost variance account. This is done to reflect the deviation from the budgeted or standard cost and to facilitate analysis and corrective actions.

An Unfavorable Cost Variance Will Be Debited to a Cost