{"id":7935,"date":"2013-01-29T08:52:27","date_gmt":"2013-01-29T08:52:27","guid":{"rendered":"http:\/\/vskills.in\/certification\/tutorial\/?p=7935"},"modified":"2024-04-12T14:13:55","modified_gmt":"2024-04-12T08:43:55","slug":"variance-analysis","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/variance-analysis\/","title":{"rendered":"Business Accounting Tutorial | Variance Analysis"},"content":{"rendered":"
\n
\"Variance<\/a><\/figure>\n<\/div>\n\n\n

Go back to Tutorial<\/a><\/p>\n\n\n

Variance Analysis<\/strong><\/h3>\n

Variance analysis is usually associated with explaining the difference (or variance) between actual costs and the standard costs allowed for the goods output. For example, the difference in materials costs can be divided into a materials price variance and a material 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. Variance analysis helps management to understand the present costs and then to control future costs.<\/p>\n

Variance analysis is also used to explain the difference between the actual sales and budgeted sales.<\/p>\n

Variances may be divided into:-<\/p>\n