Unfavourable Variance

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Definitions

Adverse Variance (Unfavourable Variance)

Adverse Variance Unfavourable Variance Standard Costing Budgetary Control Budgeted Performance Actual Costs Actual Sales Revenue Financial Analysis

In standard costing and budgetary control, adverse variance indicates discrepancies where actual performance falls short of budgeted expectations, impacting the budgeted profit negatively.

Definitions

Unfavourable Variance

Unfavourable Variance Adverse Variance Budget Variance Financial Performance Cost Management Profitability

Unfavourable variance, also known as adverse variance, indicates that actual financial performance is worse than the budgeted expectation, resulting in lower profits or higher costs than anticipated.