Variance analysis

**Variance Analysis**
Variance analysis is a financial management tool used to evaluate the difference between planned budgets and actual performance. By comparing expected outcomes with real results, businesses can identify areas where they are overperforming or underperforming. This process helps in diagnosing the causes of deviations, enabling better decision-making and improved budget control. Variance analysis is essential for effective financial planning, cost management, and enhancing overall operational efficiency.