Variance anaylsis Flashcards
1
Q
What is variance analysis?
A
Analyse the budget figures against the actually figures- there may be a variance
2
Q
What is favourable variance?
A
The manager has underspent in his department, this would be regarded as a success as any costs cut will have an impact on profit
3
Q
What is adverse variance?
A
The manager has overspent and it would depend on the reasons
