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Research Journal of Finance and Accounting ISSN 22221697 (Paper) ISSN 22222847 (Online) Vol.4, No.13, 2013www.piste.reapplication of Variance Analysis for Performance Evaluation: A Cost/Benefit Approach. Jude
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How to fill out application of variance analysis

01
Start by collecting all the relevant data and information needed for the variance analysis.
02
Identify the areas or factors that you want to analyze and determine the desired outcome of the analysis.
03
Prepare the necessary templates or forms for recording the variance data, such as a variance analysis spreadsheet or software.
04
Compute the variances by subtracting the actual values from the budgeted or expected values for each factor.
05
Analyze the variances by comparing them to predefined thresholds or benchmarks, and identify the reasons behind the variances.
06
Document the results of the analysis and prepare a variance analysis report summarizing the findings.
07
Draw conclusions from the analysis and recommend any necessary actions based on the identified variances.
08
Present the variance analysis report to the relevant stakeholders or decision-makers and discuss the implications and recommendations.
09
Implement any corrective actions or improvements based on the findings of the variance analysis.
10
Periodically review and update the variance analysis process to ensure its effectiveness and relevance.

Who needs application of variance analysis?

01
Businesses and organizations that want to understand and improve their financial performance.
02
Managers and executives responsible for budgeting, planning, and cost control.
03
Finance departments or professionals involved in financial analysis and reporting.
04
Auditors and consultants who need to assess the accuracy and efficiency of financial processes.
05
Investors and shareholders who want to evaluate the financial health and stability of a company.
06
Government agencies or regulatory bodies that require businesses to submit variance analysis reports.
07
Academic institutions teaching financial management or accounting courses.
08
Individuals interested in analyzing and optimizing their personal finances.

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