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The Need for Prompt and Relevant Corrective Action


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.


From → 01 - Budgets

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