ThisĪccountants, determines the reasons for variance occurrence and decides whether Identify the reasons for variances, make conclusions, and take action. workers' productivity or labor efficiency rate).
Usually play an important role in the management's decision making process Select important variances for further investigation selected variances In general, variance analysis is performed forĭollar amount of variances by comparing actual and standard costs. Identifying variances between standard and actual costs and then analyzing the Standard variance analysis is the process of Standard cost variance is the difference between a standard cost
Let's start with definitions of a standard cost variance and standard variance analysis:
