Question

What is variance analysis why is it called as a tool of management?

Answer 1

Hey mate

*Variance analysis:- also described as analysis of variance or ANOVA, involves assessing the difference between two figures.

*It is a tool applied to financial and operational data that aims to identify and determine the cause of the variance.

*In applied statistics, there are different forms of variance analysis.

In project management, variance analysis helps maintain control over a project's expenses by monitoring planned versus actual costs.

Effective variance analysis can help a company spot trends, issues, opportunities and threats to short-term or long-term success.

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