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Variance analysis is the process of analyzing variances by sub-dividing the total variance in such a way that management. Can assign responsibility for any off standard performance. Variance analysis is the process of computing the amount of variance & isolating the causes of various between actual and standard. An important aspect of variance analysis is the need to separate controllable from an controllable variances. Favorable &un favorable variances               Where the actual cost is less than for standard cost is known as favorable (or)credit variances. And the other hands where the actual cost is more than for standard cost is known as unfavorable(or)debit variances. Cost variance Cost variance is the diff between standard cost and actual cost incurred during a period . Total cost is divided 3-types These are: Material cost variance Labor cost variance Over head variance 1.Material...

The chartered institute of management accounting (CIMA) UK as defined a budget as “A plan quantified in monitory terms prepared and approved prior to a defined period of time usually showing planned income to be generated showing planned income to be generated and or expenditure to be incurred during the period and the capital to be employed to attain a given objective. Characteristics : ●       A budget is primarily a planning and control device ●       A budget is prepared in monitory terms. ●       A budget is prepared for a definite future period. ●       It shows planned income and expenditure and also the capital to be employed ●       Purpose of a budget is to implement the policies formulated by the management for attaining the given objective. Budgeting :             The act of pre...