8. Evaluating Performance: The Use of Variance Analysis

  1. Jae K. Shim,
  2. Joel G. Siegel and
  3. Allison I. Shim

Published Online: 9 MAR 2012

DOI: 10.1002/9781118387023.ch8

Budgeting Basics and Beyond, Fourth Edition

Budgeting Basics and Beyond, Fourth Edition

How to Cite

Shim, J. K., Siegel, J. G. and Shim, A. I. (2011) Evaluating Performance: The Use of Variance Analysis, in Budgeting Basics and Beyond, Fourth Edition, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118387023.ch8

Publication History

  1. Published Online: 9 MAR 2012
  2. Published Print: 17 OCT 2011

ISBN Information

Print ISBN: 9781118096277

Online ISBN: 9781118387023

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Keywords:

  • variance analysis;
  • standard cost;
  • decision making;
  • standard types;
  • sales variances

Summary

This chapter contains sections titled:

  • Usefulness of Variance Analysis

  • Standard Setting

  • Planning Variance

  • Sales Variances

  • Cost Variances

  • Material Variances

  • Labor Variances

  • Overhead Variances

  • Interrelationship of Variances

  • Mix and Yield Variances for Material and Labor

  • Profit Variance Analysis

  • Nonmanufacturing Activities

  • Illustrative Variance Analysis Report for a Service Business

  • Variances to Evaluate Marketing Effort

  • Illustrative Marketing Performance Report

  • Variances in Administrative Expenses

  • Capital Expenditures

  • Variance Analysis Reports

  • Summary