Are favorable variances always good and unfavorable variances always bad? How should variances be interpreted?
What about the situation in which the materials price variance is favorable and the materials quantity variance is unfavorable? How would you explain that situation?

Answer rating: 100% (QA)

Favorable variances are always not good and unfavorable variances are always not bad First we need to understand the meaning of variance the variance occurs when an actual outcome deviates from an exp... View the full answer