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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.
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