Tag Archives | Variance Analysis

What is Variance Analysis? | Cost Accounting

Get the answer of: What is Variance Analysis? ‘Variance’ is the difference between planned, budgeted or standard cost and actual costs and similarly in respect of revenues. This should not be confused with the statistical variance which measures the dispersion of a statistical population. ‘Variance Accounting’ is a technique whereby the planned activities of an […]

4 Major Types of Variance Analysis | Cost Accountancy

The following points highlight the four major types of variance analysis. The types are: 1. Material Variances 2. Labour Variances 3. Variable Overhead Variances 4. Sales Variances. Variance Analysis: Type # 1. Material Variances: Some Definitions: 1. Direct Materials Usage Variance: “The difference between the standard quantity specified for actual production and the actual quantity […]

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