What does variance analysis mean on the CPA exam?
Variance analysis. Splitting the gap between budget and actual into causes, typically price and quantity, so that the responsibility for each can be located.
Which CPA exam sections use variance analysis?
Variance analysis appears in the BAR section of the CPA exam.
Related terms
- management's discussion and analysis: A narrative overview management provides ahead of the financial statements.
- fair market value: The price at which property would change hands between a willing buyer and a willing seller, neither under compulsion and both reasonably informed.