Variance analysis / comparison of budgeted and actual figures CBA
Variance analysis/comparison of budgeted and actual figures CBA / Soll-Ist-Vergleich SIV
Variance analysis in a broader sense is the comparison between actual values and output on the one hand with “what should have been” on the other. In this form, the term relates to the enterprise as a whole. Variance analysis in the narrower sense (CBA) is the comparison between actual costs incurred and the standard costs within a cost center. The standard costs show the costs that would have resulted if the actual activity level was produced as planned. The difference between actual and standard costs is the budget spending variance. In the CBA the causes laying behind these variances are analysed, so that ways and means of avoiding such variances in future can be identified and any corrective measures agreed upon.