Variance analysis refers to a difference between two values. The deviation may favorable or unfavorable as under:
Variance is generally calculated as per below parameters
The time period for measuring deviation can be as under:
- Current Month vs Previous Month
- Current Year vs Previous Year
- First Quarter vs Second Quarter
Variance Reports are made to find out the % increase or decrease for Profit, Revenue, Cost Expenses, Attrition, Manpower Count, Salary, Recruitment Cost etc.
Examples of Variance Analysis charts