Unfavorable Variance

Unfavorable Variance

The actual costs of a project over and above the normal costs of a similar project. Companies try to avoid unfavorable variances by budgeting carefully.
References in periodicals archive ?
employees' annuities and "an unfavorable variance related to property tax adjustments" of $13 million.
00 X 500 = $3,000 Unfavorable variance ($451) Rate Component AQ (SR - AR) or 580 ($6.
Budgeting for an increase in sales volume of some negotiated percentage and then analyzing the unfavorable variance after falling short of the budget will not provide the same information.
Since the salesmen were remunerated at the rate of 5 percent for each dollar of sales, the selling price decrease for bourbon generated a favorable commission variance for bourbon and unfavorable variance for vodka, which experienced a price increase.
Meier said he expected a strong first half of 2004, with 3 to 5 percent sales growth, but warned of a decrease in earnings per diluted share because of an unfavorable variance in equity earnings and a higher pension expense.
The unfavorable variance of $6,284 could have been avoided, had the sales manager met the original sales targets (i.
For example, an unfavorable variance from the $3 per hundredweight standard used in Step 6 could be traceable to the transportation activity.
This translates to an unfavorable variance of $35,632; the firm should have had to invest that much more than was budgeted for receivables because of the difference between budgeted and actual sales proportions.
10 above the standard, resulting in a $270 unfavorable variance.
retail marketing margins, an income tax benefit in the 2011 quarter, and an unfavorable variance from foreign exchange.
That's because disruptions cause inefficiency in the manufacturing cycle, create unfavorable variance in production time, reduce capacity utilization, impact on-time production, and lead to defects and increased rework rate.