05.
Tracking Budget Performance
With Variance Analysis
corporatefinanceinstitute.com
, Learning objectives
Outline how variances are Calculate variances and Build a variance dashbo
used to monitor and control interpret results report
a business
corporatefinanceinstitute.com
,What is variance analysis all about?
Variance
The difference between budgeted/expected cost
and actual cost; and similarly for revenue
Variance Analysis
The process of examining in detail each variance
between actual and budgeted/expected costs to
determine the reasons why budgeted results were not
met (material costs too high, sales prices too low, etc.)
corporatefinanceinstitute.com
, What is variance analysis all about?
Calculating Variances
Variances Budget
Sales Volume 100
Sales Value $1000
Variable Costs (500)
Fixed Costs (200)
Profit 300
corporatefinanceinstitute.com
Tracking Budget Performance
With Variance Analysis
corporatefinanceinstitute.com
, Learning objectives
Outline how variances are Calculate variances and Build a variance dashbo
used to monitor and control interpret results report
a business
corporatefinanceinstitute.com
,What is variance analysis all about?
Variance
The difference between budgeted/expected cost
and actual cost; and similarly for revenue
Variance Analysis
The process of examining in detail each variance
between actual and budgeted/expected costs to
determine the reasons why budgeted results were not
met (material costs too high, sales prices too low, etc.)
corporatefinanceinstitute.com
, What is variance analysis all about?
Calculating Variances
Variances Budget
Sales Volume 100
Sales Value $1000
Variable Costs (500)
Fixed Costs (200)
Profit 300
corporatefinanceinstitute.com
