Answer: An unfavorable variance can be used to detect a drop in estimated income early, and then solutions to the challenge can be identified.
Step-by-step explanation:
An unfavorable variance is the difference between a company's projected expectation and the actual outcome of a financial activity of the company, where the actual outcome is less favorable than the projected expectation.
The information from an unfavorable variance can help alert a company to a negative outcome early, and the company's leadership can then find ways of solving the cause of the negative outcome.