Debit balances in variance accounts represent
A) unfavorable variances.
B) favorable variances.
C) favorable for price variances; unfavorable for quantity variances.
D) favorable for quantity variances; unfavorable for price variances.

Question

Quizplus · Accepted Answer

Debit balances in variance accounts represent unfavorable variances. This means that there was a deviation from the standard or expected cost that had an adverse effect on the company's financial performance. It is important for companies to investigate and identify the root causes of unfavorable variances to improve their cost control and operational efficiency.

Debit Balances in Variance Accounts Represent