November 2008
Beginner
448 pages
11h 33m
English
Content preview from Budgeting Basics and Beyond
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8.13. Illustrative Variance Analysis Report for a Service Business
For a service business, cost variances may be reported in special reports. For example, the variance in time and cost spent for processing payments to creditors may be analyzed. An illustrative format follows.
| Variance in Time | Variance in Cost | |
|---|---|---|
| Function | ||
| Processing purchase orders | ||
| Processing receiving reports | ||
| Processing vendors' invoices | ||
| Preparing checks | ||
| Filing paid vouchers and supporting documents |
Variances for these functions are useful only for large companies where the volume of activity allows for the arrangement and analysis of such repetitive tasks.
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