Variance (accounting)
In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard amount and the actual amount incurred/sold. Variances can be computed for both costs and revenues.
The concept of variance is intrinsically connected with planned and actual results and effects of the difference between those two on the performance of the entity or company.
Read more about Variance (accounting): Types of Variances, Variance Analysis
Famous quotes containing the word variance:
“There is an untroubled harmony in everything, a full consonance in nature; only in our illusory freedom do we feel at variance with it.”
—Fyodor Tyutchev (1803–1873)