On comparing actual performance with the budget, the Light Globe Company determined that there was a favourable variance in sales and an unfavourable variance in the cost of goods sold. This means that both actual sales and costs were higher than expected.

Question

Quizplus · Accepted Answer

A favourable variance in sales means that actual sales were higher than budgeted sales, while an unfavourable variance in the cost of goods sold means that actual costs of producing goods were higher than budgeted. Both of these factors point towards actual sales and costs being higher than expected.

On Comparing Actual Performance with the Budget, the Light Globe