Variance Analysis (Two Cases)

Variance Analysis (Two Cases)

Introduction

Variance analysis is a statistical technique that is highly used in evaluating process of budgets. Nearly all organizations are utilizing these techniques for planning and forecasting of revenues and expenditures. This technique helps organizations in designing a road map for their overall operations (Scheffé, 05-Mar-1999). Governments utilizes such techniques in post budget time period to find where they made mistakes and in which area they should invest more. It is nearly impossible when expectations meet actual position when it comes to numbers and forecasting. Deviations always take place between actual and expected figures in organization ...