Business
Doyle785
2016-04-09 16:50:06
When a manufacturing company uses a standard costâ system, an unfavorable variance is a contra expense. a. True b. False?
ANSWERS
brandiwebster
2016-04-09 17:08:54

The statement above is FALSE. A contra expense account is one that is expected to have a credit balance instead of the usual debit balance. An unfavourable variance refers to a situation in which the actual costs are greater than the expected costs. An unfavourable variance is not a contra expense. 

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