Learn what analysis of variance (ANOVA) is, how it works, and when to use it. See how it helps compare means across multiple data groups in statistics and research.

Variance analysis, also described as analysis of variance or ANOVA, involves assessing the difference between two figures. It is a tool applied to financial and operational data that aims to identify ...

Every small business owner should have a budget that lays out the future course of the company's activities. A budget shows where the sales will come from and how the money will be spent, with the ...

Identify budget overages and savings to forecast future costs more accurately. Use variance analysis to pinpoint operational areas needing financial adjustment. Regularly update budgets based on ...

Many finance teams treat variance analysis as a box-checking exercise: Set a threshold, flag the swing, move on. That’s why so many controllers spend days chasing noise while risks slip through. It’s ...

Discover how efficiency variance reveals the gap between expected and actual inputs in production and its impact on labor, materials, and costs.

Please note: This item is from our archives and was published in 2012. It is provided for historical reference. The content may be out of date and links may no longer function. In his article ...

Kaplan, Robert S. "Variance Analysis and Flexible Budgeting." Harvard Business School Background Note 101-039, October 2000. (Revised March 2004.) ...