Variance analysis is a good skill to learn if you want to become a program control analyst, senior program control analyst, or senior manager-finance planning & analysis. Here are the top courses to learn variance analysis:
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1. Flexible Budgets, Standard Costs, & Variance Analysis
This comprehensive Udemy course combines insights from college topics generally covered by managerial accounting textbooks with practical applications to provide a deep understanding of essential tools in managerial accounting. To set the right foundation, we begin by introducing managerial accounting topics and contrasting them with financial accounting. This establishes the correct mindset for the course, ensuring a clear understanding of the distinctive features and objectives of managerial accounting. We then delve into flexible budgets, exploring their advantages over static or fixed budgets. Through interactive example problems and step-by-step instructional videos, you will grasp the benefits of flexible budgets and learn how to utilize them effectively. Next, we define and analyze standard costs and cost variance analysis. While providing an overview of cost variance analysis concepts, we will progressively dive deeper into each topic, equipping you with practical skills to identify and interpret cost variances. Sales variance analysis will be thoroughly covered, including its purpose, calculation methods, and real-world applications. By working through example problems and following detailed instructional videos, you will gain hands-on experience in calculating sales variances. Direct materials variance analysis will be explored comprehensively, demonstrating its practical use and calculation methods. Through instructional videos and example problems, you will master the application of direct materials variance analysis concepts. Direct labor variance analysis will also receive extensive attention, ensuring a comprehensive understanding of its purpose and applications. Through instructional videos and practical examples, you will acquire the skills to calculate and interpret direct labor variances. Overhead variance analysis will be discussed in detail, highlighting its significance in cost management. You will understand why overhead variance analysis is used and learn how to calculate and analyze overhead variances. Through demonstration presentations, example problems, and step-by-step instructional videos, you will navigate the intricacies of overhead variance analysis. As a capstone, we will provide comprehensive problems on overhead variance and variance analysis. With preformatted Excel worksheets and accompanying instructional videos, you will have the opportunity to apply your knowledge and skills in solving complex variance analysis scenarios. The Excel worksheets will guide you through the step-by-step problem-solving process, enabling a hands-on experience to reinforce your understanding. Join us on this transformative journey of mastering managerial and cost accounting tools. Enroll now and unlock the power of variance analysis and budgeting for effective decision-making and financial management...
2. Sales & Gross Profit Variance Analysis (Price, Mix, Volume)
Do you ever find yourself, in business review meetings, trying to explain the business performance versus budget, or prior period, but not having all the answers? Then, this course is just for you. Being able to analyse and present the profitability of a business through variance analysis is a key business partnering skill. It can help you identify key business issues and establish your position as a trusted finance business partner to the senior management. This is a must have skill for all finance and business professionals, specially Sales Analysts, Financial Analysts, Accountants, Controllers, CFOs, General Managers and CEOs. In this course, we take a detailed look at calculating and analyzing variances in sales and gross profit (budget variance analysis and prior period variance analysis), driven by changes in sales prices, sales quantities and product mix. With the help of these variances we will be able to explain precisely the performance gap, both in terms of dollar amounts and profit margin percentages, vs budget and prior period. We will calculate the variances by developing automated Microsoft Excel files. Once all the variances in price, volume, quantity and mix are calculated, we will convert them into charts for presentation, and then analyze in detail each variance. We will also explain performance versus budget and prior year, and then make precise recommendations to improve profitability and business performance. Here is what you will learn in this course?- You will be able to explain precisely the variance in amounts for Sales, Cost of Sales and Profit vs budget and vs previous period.- You will also learn how to explain the variance in Profit margin percentage (%) vs budget and vs previous period, and what impacts the variance in margin points.- You will learn how to summarize the variance results and present it to management in the form of easy to follow graphs/charts (visualization).- You will learn how to analyse the results of the variance calculations, and provide recommendations to management (using Microsoft PowerPoint).- You will start with current period actual sales, cost of sales and gross profit of a company, compared with budget and prior year results. - You will learn about the hierarchy of sales variances; Sales Price, Volume, Quantity and Mix.- You will learn how to create Excel templates to calculate all of these variances that are automated and update as soon as new data replaces existing data (this is great for monthly and weekly, or even daily updates).- You will learn about when to use Selling price, and when to use Profit as a base for calculation.- There will be quizzes and assignments to test and reinforce your knowledge.- You will also get downloadable solved variance analysis Excel files, that we prepare during the course lectures. In summary, by the end of this course, you will be able to explain financial performance vs budget and previous year as a result of changes from sales price, quantities and product mix. You will be able to successfully explain results, and empower decision makers to make informed business decisions based on your recommendations. This will save you a lot of time and effort, and is likely to have a significantly positive impact on your confidence and career growth. You can achieve this mastery of explaining variances in sales and profitability as soon as tomorrow, or your next meeting, if you take this course now. So, don't wait and start learning by enrolling for the course, right now. Hope to see you inside the course!...
3. SAP CO: Production VARIANCE ANALYSIS in S/4 HANA
Variance analysis is a critical component of controlling in the manufacturing sector, as it highlights the deviations between the planned (or standard) and the actual outcomes, which then informs management decisions. Let's delve into the nuances of these variance categories for a better understanding: Input Side Variances:1. Input Price Variance: This is the difference between the standard cost and the actual cost of inputs. For instance, if a company planned to purchase raw material at 10 per unit but actually purchased it at 11 per unit, this leads to a price variance.2. Input Quantity Variance: It's the difference between the standard quantity and the actual quantity used. If a company planned to use 50 units of a raw material but ended up using 52 units, this will result in a quantity variance.3. Resource-Usage Variance: This arises when alternative resources are used instead of the ones originally planned. For instance, using a higher-grade material instead of a standard one can lead to this variance. It's essentially the difference in cost between the actual resource used and the planned one.4. Remaining Input Variance: Any variance that cannot be attributed to the previously mentioned categories falls under this. Overhead rate changes during the production cycle are common culprits. Output Side Variances:1. Output Price Variance: This arises from the difference between the actual selling price and the standard selling price of the finished product.2. Mixed Price Variance: In scenarios where materials are valuated using a mixed cost estimate, any difference between the standard cost (derived from a standard mix) and the actual cost (resulting from an actual mix) leads to this variance.3. Lot Size Variance: Differences between the actual batch size or lot size used in manufacturing and the lot size considered during standard costing lead to this variance. This is crucial because certain costs might be fixed per batch, and deviations in batch sizes can lead to cost discrepancies.4. Remaining Variance: This is a catch-all category for variances that don't fit into any other specified category. A common reason for such a variance is the absence of a target cost for the material, which can arise if a standard cost estimate is unavailable or if there's been no goods receipt against a production order. Scrap Variances: In manufacturing, scrap refers to the portion of a raw material or semi-finished goods that, due to defects or inefficiencies during the production process, doesn't end up as a part of the final product. Understanding the sources and reasons for scrap is vital to optimize production processes, minimize waste, and control costs. Scrap variances help pinpoint where in the process the wastage is happening and how it might be minimized.1. Assembly Scrap: Definition: Assembly scrap pertains to the waste or defects that occur during the main assembly process. This is when different components or materials are being assembled to form the final product or a significant subassembly.2. Operation Scrap: Definition: Operation scrap refers to the waste that happens at a specific operation or stage in the manufacturing process, well before the assembly.3. Component Scrap: Definition: Component scrap is related to the waste of specific components or parts used in the production process. This isn't necessarily about a stage in the process but is about defective parts. In Conclusion: Variance analysis is crucial in manufacturing to pinpoint areas of inefficiency or unforeseen changes. By understanding where and why variances occur, companies can adjust their operations accordingly, resulting in better cost management and profitability. However, the key is not just to identify but also to act upon these variances by taking corrective measures...
Jobs that use Variance Analysis
- Cost Accountant
- Cost Accounting Manager
- Cost Controller
- Finance Analyst
- Finance And Marketing Analyst
- Program Control Analyst
- Program Finance Analyst
- Project Control Analyst
- Senior Cost Accountant
- Senior Finance Analyst
- Senior Manager-Finance Planning & Analysis
- Senior Program Control Analyst
- Senior Project Control Analyst
Updated December 8, 2023