When would a cost variance be listed as unfavorable?
A) When actual costs are less than budgeted costs
B) When actual costs exceed budgeted costs
C) When actual costs are equal to budgeted costs
D) When actual sales are less than budgeted sales

Question

Quizplus · Accepted Answer

A cost variance is listed as unfavorable when actual costs exceed budgeted costs, as this represents a higher than expected expenditure and potential deviation from the planned budget.

When Would a Cost Variance Be Listed as Unfavorable