Favorable variance

Favorable variance is variance that has the effect of increasing operating income relative to the budgeted amount. Denoted F.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Favorable variance. Variance that has the effect of increasing operating income relative to the budgeted amount. Denoted F.

According to Managerial Accounting by Braun, Tietz (5th edition),

Favorable variance. A variance that causes operating income to be higher than budgeted.