Financial Variance Analysis Task

From GM-RKB
(Redirected from Financial Variance Analysis)
Jump to navigation Jump to search

A Financial Variance Analysis Task is a financial analysis task that is a variance analysis (to investigate financial variances).



References

2016

  • (Wikipedia, 2016) ⇒ http://wikipedia.org/wiki/variance_(accounting)#Variance_Analysis Retrieved:2016-4-14.
    • Variance analysis, in budgeting (or management accounting in general), is a tool of budgetary control by evaluation of performance by means of variances between budgeted amount, planned amount or standard amount and the actual amount incurred/sold. Variance analysis can be carried out for both costs and revenues.

      Variance analysis is usually associated with explaining the difference (or variance) between actual costs and the standard costs allowed for the good output. For example, the difference in materials costs can be divided into a materials price variance and a materials usage variance. The difference between the actual direct labor costs and the standard direct labor costs can be divided into a rate variance and an efficiency variance. The difference in manufacturing overhead can be divided into spending, efficiency, and volume variances. Mix and yield variances can also be calculated.

      Variance analysis helps management to understand the present costs and then to control future costs.

2014


2013