In a standard cost system,an unfavorable variance will appear as:
A)a credit entry.
B)a debit entry.
C)either a debit or a credit entry.
D)variances do not affect journal entries.

Question

Quizplus · Accepted Answer

An unfavorable variance means that actual costs have exceeded standard costs. This results in higher expenses than anticipated, which is reflected in the accounting system as a debit entry. Therefore, the correct answer is B, a debit entry.

In a Standard Cost System,an Unfavorable Variance Will Appear As