In the cost variance analysis, the list of the steps in order is:
- Prepare reports
- Analyze variances
- Questions and answers
- Take action
What is Cost Variance Analysis?
Cost variance analysis is one of the budgeting methods that can be used by companies. This method is used by companies to see if there are costs that do not normally occur to the company or irregurality. This cost variance method can also be used to see if there is fraud in the company. The method used to carry out this method is to look at the difference between the amount of money allocated by the company and the total money used by the company.
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