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What are the two periods of time in which project audits can occur and how do these differ?
Unfavorable Cost Variance
A variance that occurs when the actual cost exceeds the standard cost.
Favorable Cost Variance
A variance that occurs when the actual cost is less than standard cost.
Standard Cost
A predetermined cost of manufacturing, storing, and marketing a product, used for budgeting and performance evaluation.
Variances
Differences between planned or expected financial performances to the actual financial performance.
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