Asked by zereniah mungate on May 22, 2024

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What are the four steps in the effective management of variance analysis?

Management Of Variance Analysis

The process of investigating the differences between actual financial results and budgeted or expected results, with the aim of understanding the reasons behind these variances to manage and improve financial performance.

  • Describe the steps involved in the effective management of variance analysis.
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Keyla AdeetaMay 22, 2024
Final Answer :
The four steps are: (1)prepare a standard cost performance report,(2)compute and analyze variances,(3)identify questions and their explanations,and (4)take corrective and strategic actions.