When would a variance be labeled as unfavorable?
A) When standard costs are more than actual costs
B) When expected sales are less than actual sales
C) When actual sales are equal to expected sales
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

None of the given options correctly describe an unfavorable variance. An unfavorable variance occurs when actual costs exceed standard costs or when actual sales are less than expected sales.

When Would a Variance Be Labeled as Unfavorable