Definition for Variance?

Definition of Variance

Variance is a statistical measure of how much a set of observations differ from each other. In accounting and financial analysis, variance also refers to how much an actual expense deviates from the budgeted or forecast amount.

Explanation of Variance

For example, if you think you’ll spend $500 on groceries but you actually only spent $600 on groceries, you have a variance of $100.

Previous Post
Newer Post