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Basic Costing- Formula's


I was hoping someone would be able to help me, as I haven't had much luck with my current provider and I ordered some books from a different provider and they obtained completely different info so now I'm even more confused;
I am currently completing Basic Costing, Level 2.
There is one part that I am stuck on in regards to formulas! When you have to write the formula for example of the variance, do you:
a) Budget minus actual on income and expenses
b) Budget minus actual on expenses but actual minus budget on expenses
c) Largest figure minus lowest figure

Different providers tell you didn't things. I have my exam this Saturday and would really like to know what the correct way is for the formula!
Thanks so much :)


  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    From memory you have to state all variances as 'adverse' or 'favourable' rather than positive or negative? So always write the variance as positive (highest figure minus lowest figure), then state which way it is.

    Obviously if actual is greater than budget for expenses it is adverse, and vice versa for income.

    Unless of course anything has changed in the way they present the exam?

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