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Management · Q179

Management Accounting

Graduate and Post Graduate · Management · question 179

Q179

An unfavourable variance in static budget is also known as

A.
favourable variance
B.
adverse variance
Answer
C.
adverse standard deviation
D.
unfavourable variance

Answer: Option B

Solution

Answer: Option B
Solution:
An unfavourable variance in static budget is also known as adverse variance. 'Unfavorable variance' is an accounting term that describes instances where actual costs are greater than the standard or expected costs.