Skip to content

The Need for Prompt and Relevant Corrective Action

27/04/2016

Variance analysis attempts to identify discrepancy between actual and planned results.

Adverse/unfavourable variance should be investigated – determine cause i.e. inefficiency or external factor,

Inefficiency could be caused by lack of motivation or inappropriate training.  Steps should be taken to rectify issues.

External factors, such as a downturn in market, are harder to accommodate. May be necessary to amend targets accordingly.

Either cause should be dealt with promptly to avoid an increase in adverse variance.

Advertisements

From → 01 - Budgets

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: