International Small Business Consulting
Variance analysis is a quantitative tool used to assess the difference between planned financial outcomes and actual financial performance. It helps organizations understand why variances occur by breaking them down into specific components, such as price or quantity variances, and is essential for effective budgeting and forecasting processes. By evaluating these variances, businesses can make informed decisions to improve their future financial planning.
congrats on reading the definition of variance analysis. now let's actually learn it.