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After an accident, Sipho's heart is not beating and he has stopped breathing. Sipho is
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.
Standard Costs
Predetermined costs for materials, labor, and overhead that are used as benchmarks to measure actual performance against expected results.
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