Variance analysis is a tool used by management to pinpoint inefficiencies in the manufacturing process.

Question

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Variance analysis typically involves comparing actual costs or performance against budgeted or standard costs or performance to identify areas where actual results deviate from expected or desired results. By identifying these variances, management can investigate the causes of inefficiencies and take corrective action to improve performance and profitability.

Variance Analysis Is a Tool Used by Management to Pinpoint