Question

what do you understand by variances?explain its types​

Answer 1

Answer:

A variance is the deviation of actual from standard or is the difference between actual and standard.

A. On the basis of Elements of Cost.

Material Cost Variance.

Labour Cost Variance.

Overhead Variance.

B. On the basis of Controllability

Controllable Variance.

Uncontrollable Variance.

C. On the basis of Impact

Favorable Variance.

Unfavorable Variance

D. On the basis of Nature

Basic Variance.

Sub-variance.