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Accounting > Variance Analysis

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Variance Analysis Defined

is the analysis of performance by means of variances. Used to promote management action at the earliest possible stages. After a budget (based on standard costs) has been setits usefulness lies in the review procedures which compare actual results against the budget. Variance analysis is the process of examining in detail each variance between actual and budgeted/expected/standard costs to determine the reasons why budgeted results were not met (material costs too highsales prices too lowetc.).

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Off-site Variance Analysis Links, User Submitted

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  • Analysis of Variance and Covariance: This page presents example datasets and outputs for analysis of variance (ANOVA) and covariance (ANCOVA), and computer programs for planning data collection designs.

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