24If actual costs are greater than standard costs there is a

24.If actual costs are greater than standard costs, there is a(n)

A. normal variance.

B. unfavorable variance.

C. favorable variance.

D. error in the accounting system.

Solution

The correct option is b.unfavourable variance.

Variance is deviation from the standards established by the management.Hence if actual costs are greater than standards estimated;it would turn out to be unfavourable for the company in terms of net profits etc.