Sales variance is the difference between projected or budgeted sales figures and actual sales. It can be based on overall revenue or unit prices, and helps companies adjust production and pricing to meet customer demand and maximize profit. Sales variance is a term used to describe the difference between a company’s projected or budgeted sales […]
Genetic variance is influenced by genetic mutation, elimination of recessive traits, and gene pool size. Alleles can be dominant or recessive, and mutations can be beneficial or harmful. Inbreeding reduces genetic variance. Variance allows species to adapt and dominant traits to become more successful. Genetic variance is the result of several factors, which lead to […]
Variance measures the spread of a sample or population, calculated by adding the squares of the difference between each item and the mean. Standard deviation is the square root of variance and is more intuitive. Regression and ANOVA use variance to predict outcomes and classify sources of variance, respectively. Variance, like range, is a statistic […]
Efficiency variance is the difference between resources used and those that should have been used. It can be measured in material usage and labor efficiency. Every industry can track resource drifts in their operations to improve efficiency. Setting unreasonable efficiency goals can burn out employees. An efficiency variance is the difference between the resources used […]
Budget variance occurs when spending exceeds the allocated budget. It can be caused by poor budgeting, logistics planning, or increased product costs. Variance can be categorized into material, labor, and sales. Uncontrollable and controllable variances should be accounted for in a well-prepared budget. Budget variance is the term applied to a business situation when the […]
Inventory variance is when the actual inventory in a store is less than the records indicate. It can be caused by theft, loss, or destruction of items. Managers can choose to ignore it or take steps to limit future variance. Stores aim for a variance of 2% or less. Inventory variance is a common business […]
Flexible budget variance measures the difference between planned and actual spending or earnings. It helps control costs and assess business performance, but requires a fixed budget as a basis. Evaluating individual managers’ performance requires using relevant budget information. A flexible budget variance is the difference between the amount a company plans to spend or earn […]
