alleryStart learning →Variances are described as falling into how many kinds?
ATwo kinds
BThree kinds
CFive kinds
DTen kinds
Answer & Solution
Correct answer: A. Two kinds
1. Variances are classified by which way they go.
2. A variance is a difference between standard and actual performance.
3. There are favorable and unfavorable variances.
4. The direction of the difference decides which it is.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 8 'Standard Costs and Variances'_
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