Variance analysis of fixed nonmanufacturing costs,such as distribution costs,can also be useful when planning for capacity.

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Variance analysis of fixed nonmanufacturing costs, such as distribution costs, can help in identifying and controlling costs as well as in making informed decisions regarding capacity planning. It enables the management to assess the efficiency and effectiveness of their operations by comparing actual costs with budgeted costs and identifying areas of improvement. Thus, it is a useful tool in capacity planning as it helps in determining the optimal level of resources required to meet future demand.

Variance Analysis of Fixed Nonmanufacturing Costs,such as Distribution Costs,can Also