Variance Analysis Example Actuals vs Budget

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Variance Analysis Example Actuals vs Budget

Variance analysis can be summarized as an analysis of the difference between planned and actual numbers. The sum of all variances gives a picture of the overall over-performance or under-performance for a particular reporting period. For each item, companies assess their favorability by comparing actual costs to standard costs in the industry.

For example, if the actual cost is lower than the standard cost for raw materials, assuming the same volume of materials, it would lead to a favorable price variance (i.e., cost savings). However, if the standard quantity was 10,000 pieces of material and 15,000 pieces were required in production, this would be an unfavorable quantity variance because more materials were used than anticipated.

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[spikeydude]

Thank you, Asif! Your video is very informative and it is greatly appreciate! You are very knowledgeable and I am grateful that you share your knowledge with us.

[shobhashining]

Very informative video 👍🏼 Not just the finance topic, but excel formulas are also well explained

[RajKumar-oedi]

Thank you, Asif for the best explanation, this is quite easy to understand in the context of FP&A working,
Keep up the good work and please upload more interesting facts and figures about FPNA, thanks

[kpsenterprises]

Thank you so much I am new to your channel but I am impressed at the first visit 🙂

[nishasatija]

What is the relevance of reference i.e 1, 2, 3....so on while using H-look up formula?

[asifmasani]

If you liked this webinar and interested in learning more about FP&A
to get a FREE copy of my eBook "All about FP&A"

[subhsworld]

Amazing Asif.Thanks for these kind of videos..

[ravikantisrilatha]

Hi Sir, at 3.40 Alt+h+v+f is not working in excel, it is taking same value 115 to all below cells.

[harkeshsharma]

Thank youso much for sharing this knowledge. 🙏

[raovankayala]

Thanks a lot sir, plz do an more videos on FP&A process

[casaikrishna]

Thanks a lot. Please do upload these kind of videos on all dimensions in fp&a

[caramireddych]

If you make video on Financial modeling it would be great 👍

[Cmakunal]

Sir hookup at 7:34 is not working on my system
Don't know why I'm doing the same thing

[arpitachs]

thank you its very helpful for explaining

[ripaltandel]

how would you do analysis of variance ? No such information is given

[AdeebOfficeWork]

Sir, how do we put numbers in budget ? Where does these numbers comes from ?

[shbhmsrivastava]

Hello Sir ! I am an accounts professional working in BPO for the past 8 years in Finance & Accounting domain. I have worked in Cash Application, Capex, RTR and Income Audit Profiles. Can I switch into FP&A domain now. Please guide Sir.

[ibrahkasule]

how did y'all get the templates he is using? they are un downloadable! was this made just for viewing and not practice? Help out

[satrughanshaw]

Sir how material variance, labor variance, overhead cost variance will be done ?

[imamtasneem]

informative video but you should be more clear with your voices for better understanding for learners.