ECONOMICS

Detailed explanation-1: -The variance can be favorable or unfavorable. If the actual costs are less than the estimated costs, then it is regarded as a favorable variance, and if the estimated costs are higher than the actual costs, it is considered as an unfavorable variance.

Detailed explanation-2: -A cost variance is considered to be a favorable variance when the actual cost incurred is lower than expected. The variance is considered to be an unfavorable variance when the actual cost incurred is higher than expected.

Detailed explanation-3: -A favorable cost variance occurs when the actual cost is less than the standard cost. An unfavorable cost variance occurs when the standard cost exceeds the actual cost.

Detailed explanation-4: -When revenue is higher than the budget or the actual expenses are less than the budget, this is considered a favorable variance. Unfavorable variances refer to instances when costs are higher than your budget estimated they would be.

Detailed explanation-5: -A favourable variance is where actual income is more than budget, or actual expenditure is less than budget. This is the same as a surplus where expenditure is less than the available income.