Question

Favorable variances can provide information if the organization can identify why a favorable variance occured. Steps can often be taken to replicate those conditions more often.

The underlying causes of unfavorable variances are​ identified, and corrective action taken where possible.

Answer 1

Favorable and unfavorable variances can provide important information for organizations.

Step-by-step explanation:

Favorable variances can provide valuable information for organizations when they can identify the reasons behind them. By understanding why a favorable variance occurred, steps can be taken to replicate those conditions more often. On the other hand, when it comes to unfavorable variances, it is crucial to identify the underlying causes and take corrective action when possible.