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Costing & Finance
Variance Analysis
The process of comparing actual costs to standard or budgeted costs to identify differences and their causes.
Variance Analysis helps manufacturers understand why actual costs differ from planned costs.
Types of Variances
- Material Price Variance: Due to changes in raw material prices
- Material Usage Variance: Due to wastage or efficiency
- Labor Rate Variance: Due to wage rate changes
- Labor Efficiency Variance: Due to productivity changes
See Variance Analysis in Action
Don't just read about Variance Analysis. See how Karygar automates this process to reduce manual work and errors on your factory floor.