Variance analysis: Difference between revisions
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The process of analysing and explaining differences between actual figures and forecast or budgeted figures. | The process of analysing and explaining differences between actual figures and forecast or budgeted figures. | ||
Broadly speaking, new differences are of three kinds: | |||
* Timing differences, that will reverse in later periods. | |||
* New recurring items. | |||
* One-off, non-recurring items. | |||
Another kind of difference is the reversal of an earlier timing difference. | |||
Revision as of 08:43, 9 May 2022
1.
The process of analysing and explaining differences between actual figures and forecast or budgeted figures.
Broadly speaking, new differences are of three kinds:
- Timing differences, that will reverse in later periods.
- New recurring items.
- One-off, non-recurring items.
Another kind of difference is the reversal of an earlier timing difference.
2.
More broadly, the analysis of differences between any two or more sets of related figures.
Also known as 'comparative analysis' or reconciliation.
