The ‘Input Variance’ is the result of the MISMATCH of amounts/quantities of inputs planned and actually used. You will be able to identify the following input SIDE variances in the system:

Quantity Variance: when there is a difference between planned and actual quantity of activity consumption. The inference is that there is some production inefficiency leading to more consumption or there is some loss/shrinkage in the quantities.

Price Variance: when there is a difference between the planned and actual price of an activity. The inference will be that you may need to change the SUPPLIERS looking for lower prices or it is just a market CONDITION.

Resource (use) Variance: when there is use of an unplanned cost element or there has not been a posting of a planned cost element. The inference is that there are some unidentified costs that may be planned in the next planning cycle, or just plain errors in POSTINGS.

Remaining (input) Variance: these are all miscellaneous variances where the system is not able to categorize a variance.

The ‘Input Variance’ is the result of the mismatch of amounts/quantities of inputs planned and actually used. You will be able to identify the following input side variances in the system:

Quantity Variance: when there is a difference between planned and actual quantity of activity consumption. The inference is that there is some production inefficiency leading to more consumption or there is some loss/shrinkage in the quantities.

Price Variance: when there is a difference between the planned and actual price of an activity. The inference will be that you may need to change the suppliers looking for lower prices or it is just a market condition.

Resource (use) Variance: when there is use of an unplanned cost element or there has not been a posting of a planned cost element. The inference is that there are some unidentified costs that may be planned in the next planning cycle, or just plain errors in postings.

Remaining (input) Variance: these are all miscellaneous variances where the system is not able to categorize a variance.