Variance Analysis Flashcards
1
Q
A
2
Q
What are variances used for?
A
We look at variances when we are comparing our budget with actual results.
3
Q
What are the four stages of variance analysis?
A
1) Flexing the budget to find overall variance.
2) Analysing the variances.
3) Identifying the causes.
4) Taking appropriate action.
4
Q
What is flexing the budget?
A
Putting the budgeted results in terms of actual production.
5
Q
A
