Question
In managerial accounting Standard costs part, In the text book, It says that standard costs has the potential problems that In some cases, a favorable
In managerial accounting Standard costs part,
In the text book, It says that standard costs has the potential problems that "In some cases, a favorable" variance can be as bad or worse than an unfavorable variance."
"Just meeting standards may not be sufficient; continuous improvement may be necessary to survive in a competitive environment"
SO what is this "In some cases, a favorable" variance can be as bad or worse than an unfavorable variance."
Can you explain with example?
How favorable variance can be the worse than an unfavorable variance?
I want to know exact example and explanation in this managerial accounting part
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