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Accounting Reports Interview Question:
Do you know Variance Analysis with Example?
Submitted by: AdministratorVariance 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.
Submitted by: Administrator
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.
Submitted by: Administrator
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