Variance analysis involves the steps listed below. In which order should the steps be performed?
1) Calculate variances
2) Choose variances for further investigation
3) Draw conclusions and take action
4) Identify reasons for variances
A) 1, 2, 3, 4
B) 2, 1, 3, 4
C) 2, 1, 4, 3
D) 1, 2, 4, 3

Question

Quizplus · Accepted Answer

The correct order for performing variance analysis is: 1) Calculate variances to identify differences between actual and expected results. 2) Choose variances that are significant enough to warrant further investigation. 4) Identify reasons for these significant variances. 3) Draw conclusions from the analysis and take appropriate action based on those conclusions.

Variance Analysis Involves the Steps Listed Below