Unfavorable Variance

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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 ?
Cost accountants investigating the root causes of unfavorable variances often find that production people don't remember clearly the events that generated the data, hampering any investigation.
Boards need to encourage discussion of unfavorable variances against plans.
He said the last two years have produced unfavorable variances in that area, and he said that may be the case again this fiscal year.
These weekly reports would likely show both favorable and unfavorable variances.
If warranted, immediate corrective action should be instituted for unfavorable variances.
1 What is said here in terms of unfavorable variances of course applies, mutatis mutandis, to cost savings which give rise to favorable variances.
For purposes of consistency, the convention of using brackets <> to denote unfavorable variances will be followed in this discussion.
Senior staff members analyze the reports at regularly scheduled meetings and act to correct any significantly unfavorable variances.
Actually, labeling a production variance as either over or under the scheduled amount is equally satisfactory, assuming management considers both kins of unfavorable variances.
Since the hospital financial reports sometimes include paid invoices that are not for the current month, the program segregates these unfavorable variances to minimize distortion in the budget.
Higher crude oil sales volumes in the current quarter partially offset these unfavorable variances.