When it comes to variances,
A)actual costs that vary from standard costs always indicate efficiencies.
B)ideal standards will generally result in favourable variances for the company.
C)a variance is the difference between total actual costs and total standard costs.
D)if actual costs are less than standard costs, the variance is unfavourable.

Question

Quizplus · Accepted Answer

A variance is the difference between actual costs and standard costs. It does not necessarily indicate efficiencies or inefficiencies. Ideal standards may result in unfavourable variances if they are set too high. If actual costs are less than standard costs, the variance is favourable, not unfavourable.

When It Comes to Variances