When a variance is identified as insignificant, managers need to find out the cause of the variance.

Insignificant Variance

A financial term referring to small differences between expected and actual figures that are not considered material for decision-making purposes.

Cause

A reason for an action or condition, or something that brings about an effect or result.

Variance

The difference between planned, budgeted, or standard costs and actual costs, often analyzed to control spending and improve financial management.