More specifically, smaller unfavorable budget variances are associated with greater operating margins while greater favorable budget variances are associated with greater operating margins. A single ...

What Does an Unfavorable Variance Indicate?. Accountants can use standard costing to identify variances in business operating statistics. Variance analysis can help a business narrow in on areas ...

Investopedia / Michela Buttignol Formula and Calculation of Net Operating Profit After Tax (NOPAT) To calculate NOPAT, you have to determine the operating income or profit.