Difference between revisions of "Variance Analysis"
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| − | '''Variance Analysis''' is the study of deviations of actual behaviour versus forecasted or planned behaviour in budgeting or management accounting. This is essentially concerned with how the difference of actual and planned behaviours indicates how business performance is being impacted. Variance analysis can be broken down into 2 steps: | + | '''Variance Analysis''' is the study of deviations of actual behaviour versus forecasted or planned behaviour in budgeting or [[management]] [[accounting]]. This is essentially concerned with how the difference of actual and planned behaviours indicates how [[business]] performance is being impacted. Variance analysis can be broken down into 2 steps: |
1. Calculating and recording individual variances | 1. Calculating and recording individual variances | ||
2. Understanding the cause of each variance<ref>Definition - What is Variance Analysis? [https://economictimes.indiatimes.com/definition/variance-analysis Economics Times]</ref> | 2. Understanding the cause of each variance<ref>Definition - What is Variance Analysis? [https://economictimes.indiatimes.com/definition/variance-analysis Economics Times]</ref> | ||
Revision as of 19:07, 6 February 2021
Variance Analysis is the study of deviations of actual behaviour versus forecasted or planned behaviour in budgeting or management accounting. This is essentially concerned with how the difference of actual and planned behaviours indicates how business performance is being impacted. Variance analysis can be broken down into 2 steps: 1. Calculating and recording individual variances 2. Understanding the cause of each variance[1]
- ↑ Definition - What is Variance Analysis? Economics Times