Final answer:
Unfavorable variance in payments to accounts payable can have a positive effect on profit when there are lower than expected payments made to accounts payable, resulting in a favorable cash flow situation for the company.
Step-by-step explanation:
Unfavorable variance in payments to accounts payable can have a positive effect on profit in certain situations. Unfavorable variance in payments to accounts payable can have a positive effect on profit when there are lower than expected payments made to accounts payable, resulting in a favorable cash flow situation for the company.
This can occur when there are lower than expected payments made to accounts payable, resulting in a favorable cash flow situation for the company. For example, if a company has negotiated more favorable terms with its suppliers and is able to make lower payments compared to the budgeted amount, it can increase its profit as a result.