What can you tell me about variance, as it concerns fixed or variable budgets? What is favorable variance in budget?
What can you tell me about variance, as it concerns fixed or variable budgets? What is favorable variance in budget?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What can you tell me about variance, as it concerns fixed or variable budgets? What is favorable variance in budget?
Expert Solution
Step 1Basic Information
The question is related to Standard costing and Budgetory Comtrol. Variance may be defined as the difference between budgeted , planned or Standard and the actual cost incurred is called as variance. There are two typea of variances
1. Controllable and uncontrollable variances
2. Favaourable amd Adverse variances.
Classification of Variances:- They are broadly classified into two Variances
1. Revenue Variances
2. Cost Variances
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education