Variance Analysis

Using statistical comparisons to see if your company met budgeted expectations.

Companies use labor variances to see if the employees got the job done in the number of hours budgeted. They use materials variances to see if the employees got the job done with the amount of materials budgeted. They use price variances to see if the company was able to buy materials at the budgeted price and hire labor at the budgeted rate.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/variance-analysis/