Actual cost < standard cost at actual volumes

A) Ideal standard
B) Nonfinancial performance measure
C) Currently attainable standard
D) Unfavorable cost variance
E) Favorable cost variance

Unfavorable Cost Variance

A variance that occurs when the actual cost exceeds the standard cost.

Favorable Cost Variance

A variance that occurs when the actual cost is less than standard cost.

Standard Cost

A predetermined cost of manufacturing, storing, and marketing a product, used for budgeting and performance evaluation.