When Would a Variance Be Labeled as Unfavorable

question 67

Multiple Choice

When would a variance be labeled as unfavorable?

• A) When standard costs are more than actual costs
• B) When expected sales are more than actual sales
• C) When actual sales are equal to expected sales
• D) None of these

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Definitions:

Customer Value

The perception of what a product or service is worth to a customer versus the possible alternatives, reflecting the benefits and costs.

Unique Value

Unique value denotes the exclusive benefits or features that make a product or service stand out from its competitors.

Environmental Forces

External factors such as social, economic, technological, and political conditions that influence an organization's or industry's performance but are beyond its control.

Competitive

Relating to, characterized by, or based on the principle of competition, where entities vie for dominance in a market or field.