When Variance Is Positive?

A positive variance occurs where 'actual' exceeds 'planned' or 'budgeted' value. Examples might be actual sales are ahead of the budget.

What is meant by positive variance?

What does Positive Variances mean ? Opposite to Negative Variances, Positive Variance means that your Theoretical Inventory is LOWER than your Actual Inventory. It also mean that your Theoretical Usage is HIGHER than your Actual Usage.

Is variance negative or positive?

Because the squared deviations are all positive numbers or zeroes, their smallest possible mean is zero. It can't be negative. This average of the squared deviations is in fact variance. Therefore variance can't be negative.