The process of calculating variances and analyzing the reasons they occurred is called:
A) Variance analysis
B) Budget analysis
C) Historical analysis
D) Activity-based analysis

Question

Quizplus · Accepted Answer

Variance analysis is specifically the process of calculating and analyzing variances, while budget analysis is a broader term that can refer to analyzing the budget as a whole. Historical analysis is looking at past data to draw conclusions or make predictions, while activity-based analysis is a specific approach to costing and budgeting that focuses on identifying and analyzing activities that consume resources.

The Process of Calculating Variances and Analyzing the Reasons They