Solution-Describe the causes of the variance

Describe the causes of the variance

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Reference no: EM132533866

Evaluating the performance of an organisation is a key aspect of managing and controlling it. Many organisations evaluate performance using financial measures which may include techniques such as variance analysis. Most organisations undertake a monthly variance analysis by comparing actual and budgeted revenues and expenses while some simply report the amount of these variances together with the overall profit/loss variance. However, a more thorough variance analysis identifies the causes of the variances by dividing the total variance into its various components.

Question 1. Explain the various components of an organization's overall profit/loss variance that describe the causes of the variance.

Question 2. How can non-financial performance measures enhance an organisation's financial performance measures?

Reference no: EM132533866

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Describe the causes of the variance

Reference no: EM132533866

Reference no: EM132533866

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