Business A-Level
favourable variance
What favourable variance means in Business A-Level, as defined for AQA.
Definition of favourable variance
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Read the wording for your board, then hide it and explain favourable variance in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A variance that is favourable when it improves profit.
Topics that use favourable variance
- Analysing financial performance (AQA A-Level)
Related terms
- break-even output
- cash flow forecast
- contribution per unit
- contribution squeeze
- credit terms
- data reliability
- forecast risk
- gross profit margin
Using favourable variance in the exam
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