Unfavorable variance is the difference between the actual results and the budgeted or expected results. A negative variance indicates that the actual results are worse than the budgeted or expected results. Unfavorable variance can be caused by a number of factors, including inefficiency, poor planning, and unfavorable economic conditions. What is RO in accounting? RO, or Return on Investment, is a financial ratio that measures the profitability of an investment. It is calculated by dividing the net income of the investment by the total amount of the investment. What are the three types of flexible budget variances? The three types of flexible budget variances are:
1. Sales volume variance
2. Mix variance
3. Price variance
What is Unfavourable variance in terms of sales and budget? Unfavourable variance occurs when actual sales are less than budgeted sales. This can happen for a number of reasons, such as poor economic conditions, changes in consumer demand, or competition from other businesses. When this happens, businesses may need to adjust their budgeted sales figures downwards in order to stay within their overall budget.
What does favorable or unfavorable mean in accounting?
In accounting, the terms "favorable" and "unfavorable" refer to increases and decreases in the value of assets or in the amount of revenue, respectively. For example, if a company's stock price goes up, that is considered a favorable event. Likewise, if a company reports higher than expected sales for the quarter, that would be considered a favorable event. On the other hand, if a company's stock price goes down, that is considered an unfavorable event. Similarly, if a company reports lower than expected sales for the quarter, that would be considered an unfavorable event.
What is an unfavorable variance quizlet?
An unfavorable variance is an unfavorable difference between two amounts. The term is commonly used in accounting, where it refers to the difference between actual results and expected results. An unfavorable variance can also be called a negative variance.