The Importance of Variance Analysis for Costs Control in Organizations

This review aimed at examining the importance of variance analysis for cost control in organizations. The study x-rayed the concept of variance analysis, types, sources, objectives and its significance. The study reported that variance analysis has significant influence in evaluating individual performance in organizations, assignment of responsibilities to individuals and assisting management to rely on the principle of management by exception and recommended among others, variances analysis should be based upon scientifically established standards.