alleryStart learning →An unfavorable variance involves spending or using an amount that is:
AUnrelated to standard
BMore than the standard
CLess than the standard
DEqual to the standard
Answer & Solution
Correct answer: B. More than the standard
1. The word unfavorable describes the direction of the gap.
2. There are favorable and unfavorable variances.
3. An unfavorable variance involves spending more, or using more.
4. That is more than the anticipated or estimated standard.
_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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