Facilities that focus on manufacturing and production track two kinds of costs: fixed costs and variable costs. The variable costs are those that change when production levels change: raw materials, ...

Companies use variance analysis to compare financial performance changes from one month to the next, or perhaps from one quarter to another or year to year. Typically, actual financial results are ...

Identify budget overages and savings to forecast future costs more accurately. Use variance analysis to pinpoint operational areas needing financial adjustment. Regularly update budgets based on ...

A good tool to ask the right questions. A company's planned budget at the beginning of the year will always end up being different from how the year actually plays out. It's just impossible to predict ...