Advantages And Disadvantages Of Variance Analysis
INTRODUCTION
This report will enhance and illustrate the way and uses of variance analysis. It will aims to separate and juxtapose the budgeted and actual spending of the company production line. At the end of the analysis, it will identifies the company’s weaknesses and states where it needs improvements for instance on materials, wages and labour.
Consequently, the report will further elaborate on the approach behind variance analysis and to achieve a good result, an instance study on London Plc stand costing and actual expenses will be cited. Furthermore, it will demonstrate the drawbacks of using this approach and the reasons why it is almost impractical for several companies.
VARIANCE ANALYSIS
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