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Variance Analysis

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Variance Analysis Certification


About Variance Analysis

Variance analysis is a process of examining the differences between actual results and budgeted or planned results. It is used to identify and analyze the reasons for any variances, or deviations from the budget or plan, and to determine the impact of these variances on the financial performance of a company or organization.

The process of variance analysis typically involves the following steps:

Collecting actual financial results and comparing them to budgeted or planned results.
Identifying the variances between actual and budgeted results.
Analyzing the causes of the variances and determining the impact on the financial performance.
Communicating the results of the analysis to management and other stakeholders.
Variance analysis can be applied to various financial areas such as:

Sales revenue variance analysis: comparing actual sales revenue to budgeted or planned sales revenue.
Cost of goods sold variance analysis: comparing actual cost of goods sold to budgeted or planned cost of goods sold.
Overhead variance analysis: comparing actual overhead costs to budgeted or planned overhead costs.
Production variance analysis: comparing actual production levels to budgeted or planned production levels.
The results of the variance analysis can be used by management to make decisions, such as adjusting budgets and plans, or taking corrective action to improve performance. It can also be used to identify trends and patterns, which can be used to predict future results and make better decisions.


Who should take the Variance Analysis Certification exam?

Variance Analysis course is suitable for:

Financial analysts and accountants.
Business managers and executives who need to understand financial performance.
Budget analysts and planning professionals.
Business students who want to gain knowledge of variance analysis.
Anyone interested in understanding how to analyze and interpret differences between actual and budgeted financial results.


Variance Analysis Certification Course Outline


Introduction to Variance Analysis
Types of variances and their calculations
Cost-volume-profit analysis
Flexible budgeting and variance analysis
Sales and revenue variances
Material variances
Labor variances
Overhead variances
Sales mix and volume variances
Standard costing and variance analysis
Root cause analysis and problem solving
Performance measurement and key performance indicators (KPIs)
Variance analysis in budgeting and forecasting
Variance analysis in cost accounting and financial analysis
Variance analysis in management accounting and decision making
Variance analysis in inventory and supply chain management
Variance analysis in manufacturing and production operations
Variance analysis in service and non-profit organizations
Variance analysis in government and public sector organizations
Variance analysis in international and multinational organizations
Variance analysis in project management and earned value analysis
Variance analysis in strategic planning and performance management
Variance analysis software and tools (e.g. Excel, SAP, Oracle)
Ethics and professional standards in variance analysis.

Variance Analysis FAQs

You will be required to re-register and appear for the exam. There is no limit on exam retake.

You can directly go to the certification exam page and register for the exam.

There will be 50 questions of 1 mark each

No there is no negative marking

You have to score 25/50 to pass the exam.

It will be a computer-based exam. The exam can be taken from anywhere around the world.

The result will be declared immediately on submission.