ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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FAVORABLE VARIANCE Definition
FAVORABLE VARIANCE is a variance created by using or spending less of a given resource than specified by the standard, often categorized as rate (spending less per hour for labor for a given amount of production), efficiency (using less hours for a given amount of production), usage (using less materials for a given amount of production) or price (paying less to a vendor for a given purchased item).
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EARNED SURPLUS see RETAINED EARNINGS.
FLOOR a series of European interest rate put options used to protect against rate moves below a set strike level.