How to Calculate Variance: A Comprehensive Guide for Accounting Professionals

How to Calculate Variance: A Comprehensive Guide for Accounting Professionals

Accounting variance is a financial concept that measures the difference between expected and actual results. It is a key performance indicator for businesses of all sizes, as it can help to identify areas where costs are out of control or where revenues are not meeting expectations.

Variance analysis is a valuable tool for businesses because it can help to identify opportunities for improvement. By understanding the causes of variances, businesses can take steps to reduce costs, increase revenues, or improve efficiency.

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