What does favourable and unfavourable variance mean?
Variance analysis is a known quantitative technique that involves identification and evaluation of causes behind differences between actual costs/revenues and standard (or expected) revenues/costs. Variances are analysed in terms of being favourable or unfavourable for business and are monetized as a difference given a financial value it is more easier for the relevant authorities to […]
What is Variance analysis?
Any activity humans perform they do it for betterment and get the benefit in one or the other. In business environment basic motive is profit maximization and this is ensured in every decision they take. To aid their decision making process humans are using the technique of comparison since early ages. Comparison helps human decide […]
Does Standard costing means costing based on cost accounting standards like financial accounting standards?
Standard costing does not mean cost accounting using uniform cost accounting standards similar to financial accounting standards. The main purpose of financial accounting standards is to have such set of financial statements for every entity that is comparable with other entity’s financial statements and also to have uniform basis of accounting for different transactions that […]
What is the difference between Negative assurance, Positive assurance, Negative opinion and Negative report?
Difference between Negative assurance and Positive assurance Many students get confuse in these things and mostly it is because books usually use such terminologies which prevail in the business world which are most of the time shortened up and thus sometimes lose their meanings. Lets start with Positive and Negative assurance. Many students think that […]
