alleryStart learning →Budgeted material cost was Rs 50,000 and actual cost Rs 54,000. What is the variance?
ARs 4,000 adverse
BRs 50,000 adverse
CRs 54,000 favourable
DRs 4,000 favourable
Answer & Solution
Correct answer: A. Rs 4,000 adverse
Actual cost exceeded budget by 4,000, which is worse than expected, so the variance is adverse.
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