A Cost Variance Is Unfavorable If Actual Cost Exceeds Standard

question 64

True/False

A cost variance is unfavorable if actual cost exceeds standard cost.

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Definitions:

Asset Account

Accounts used in accounting to track the value of economic resources owned or controlled by an entity which can provide future benefits.

Trial Balance

A report that lists the balances of all ledger accounts at a specific point in time, used to verify the equality of debits and credits.

Debit Column

The left-hand column in an account or financial statement where debits are recorded, typically representing increases in assets or expenses and decreases in liabilities or equity.

Credit Column

Part of an accounting record where increases in liabilities, revenues, and equity accounts are recorded.