Variance reporting

Variance reporting is a technique used to compare planned outcomes to actual performance in various areas like finance, production, or project management. It highlights differences, known as variances, between what was expected and what actually occurred. These variances can be either favorable (better than expected) or unfavorable (worse than expected). By analyzing these differences, organizations can identify areas needing improvement, make informed decisions, and adjust future plans. This process helps ensure that resources are used effectively and goals are met.