Variance analysis is a process of measuring and analyzing the difference between the two figures. Variance analysis can be defined as a statistical or accounting tool that is used in order to identify the causes of variance in financial and the operational data of
Importance of Variance Analysis
Importance of Variance Analysis explain that Variance analysis usually refers to investigating the differences between budgeted, planned or standard amounts and actual results.
Managerial Usefulness/Importance of Variance Analysis: Learning Objectives: Explain the importance of variance analysis for management in decision making process. Costs of production are effected by internal factors over which management has a large degree of control. An important job of executive management is to