Important variances and formulae for exams
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Video Overview
The focus of this tutorial is to provide you with formulae for specific variances. An important part of analytical review is the calculation of variances to see how actual performance has deviated from budgeted performance. The calculation of variances is not enough, it is vital to understand why these variances have occurred regardless of whether they are positive and negative. Once we understand why the deviations have occurred, we are then in a position to suggest corrective action.
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