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Meaning of variance analysis

 

 

 

Variance analysis

 

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Business glossary

 

Meaning of term variance analysis :

 

Variance analysis is used to explore the difference between the plans that a firm made beforehand and the actual outcome. It is a useful tool for analysing the success of a strategy. Variance analysis assesses whether the outcome has been better (favourable variance) or worse (adverse variance) than the plan and looks at the reasons for the difference in performance from what was expected.

 

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Variance analysis

 

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Meaning of term variance analysis

 

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