A favorable cost variance occurs when
A) actual costs are more than standard costs
B) standard costs are more than actual costs
C) standard costs are less than actual costs
D) actual costs are the same as standard costs

Question

Quizplus · Accepted Answer

A favorable cost variance happens when the actual costs incurred are less than what was planned or budgeted, hence when standard costs are more than actual costs.

A Favorable Cost Variance Occurs When