Companies often use variance analyses to gain greater insight into their financial performance.  Variance analysis is a process that identifies and explains differences in actual results compared to budgeted or past results. Typically thought of as more of a cost accounting tool for manufacturing companies, its usefulness extends to retail and service companies as well. This course examines the variance analysis process, its limitations and benefits, and how to effectively use it to understand and manage a company’s financial results regardless of industry.

Course Key Concepts: Budgeting and Forecasting, Variance Analysis, Favorable and Unfavorable Variances, Management by Exception, Financial Analysis, Financial Statements.

Learning Objectives

  • Discover what variance analyses are and why companies prepare them.
  • Identify the benefits and limitations of variance analysis.
  • Identify the different types of variances.
  • Recognize the connections between variances and business performance.
  • Discover how to effectively use variance analyses to understand a company’s financial statements.
Last updated/reviewed: March 10, 2020

2 Reviews (12 ratings)Reviews

4
Member's Profile
This course provides a strong framework for analyzing variance in service, retail and manufacturing entities, Clear explanations, good examples and hands-on exercises throughout.
5
Anonymous Author
A lot of information packed into this presentation gives a variety of real life examples on what variance explanations will look like.

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  1:35Introduction to Explaining Financial Results: A Practical Approach to Variance Analysis
  7:06Variance Analysis: What is it and Why is It Done?
  9:28Benefits and Limitations
  6:27Types of Variances: Service Companies
  7:56Types of Variances: Retail Companies
  6:17Types of Variances: Manufacturing Companies
  3:26Types of Variances: All Companies
  7:01Variance Explainations
  0:48Conclusion
CONTINUOUS PLAY
  50:04Explaining Financial Results: A Practical Approach to Variance Analysis
SUPPORTING MATERIALS
  PDFSlides: A Practical Approach to Variance Analysis
  PDFA Practical Approach to Variance Analysis Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM