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Do You Know Variance Analysis With Example? |
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Answer» VARIANCE ANALYSIS in budgeting or management accounting in general is a tool of budgetary control by evluation of performance by means of variance between budgeted amount, planned amount or STANDARD amt and the actual amt incurred/sold. Variance can be CARRIED out for both revenue & cost. Variance analysis hepls the management to know the present cost & then control the future cost. Examples includes sale price variance, sales quantity variance, sales mix variance. Variance analysis in budgeting or management accounting in general is a tool of budgetary control by evluation of performance by means of variance between budgeted amount, planned amount or standard amt and the actual amt incurred/sold. Variance can be carried out for both revenue & cost. Variance analysis hepls the management to know the present cost & then control the future cost. Examples includes sale price variance, sales quantity variance, sales mix variance. |
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