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Reactions to a person's behavior that encourage the person to continue the behavior is
Favorable Variances
Differences between actual and budgeted or standard costs that result in better-than-expected financial performance.
Unfavorable Variances
Differences where actual costs are higher than standard or expected costs in budgeting.
Cost Variance
The difference between the estimated cost of a project or production and the actual cost incurred.
Standard Cost
A predetermined cost of manufacturing, established based on historical data, for the purpose of budgeting and performance evaluation.
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