Question: Question 3: Variance analysis can be summarized as an analysis of the difference between planned and actual numbers. The sum of all variances gives a

Question 3: Variance analysis can be summarized as an analysis of the difference between planned and actual numbers. The sum of all variances gives a picture of the overall over-performance or under-performance for a particular reporting period. For each item, companies assess their favorability by comparing actual costs to standard costs in the industry. What is variance analysis and how is it used ? Explain the main purpose and types of variance analysis.

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