Analysis Of Variance

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Definition: Analysis Of Variance

Quick Summary of Analysis Of Variance

In standard costing and budgetary control this refers to the analysis of variances in order to determine their causes. The total profit variance or production cost variance is analysed into sub-variances to indicate the major reasons for differences between budgeted figures and actual outcomes.

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Related Phrases

What is the dictionary definition of Analysis Of Variance?

Dictionary Definition

ANOVA – Acronym for analysis of variance.

In standard costing and budgetary control this refers to the analysis of variances in order to determine their causes.

Full Definition of Analysis Of Variance

The total profit variance or production cost variance is analysed into sub-variances to indicate the major reasons for differences between budgeted figures and actual outcomes.

The main sub-variances include:

  • direct labour efficiency variance
  • direct labour rate of pay variance
  • direct labour total cost variance
  • direct materials price variance
  • direct materials total cost variance
  • direct materials usage variance
  • fixed overhead total variance
  • overhead efficiency variance
  • overhead expediture variance
  • overhead total variance
  • sales margin price variance
  • sales margin volume variance
  • variable overhead total variance

Synonyms For Analysis Of Variance

variance analysis, anova, analyses of variance, variance, gap analysis

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Analysis Of Variance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/analysis-of-variance/ (accessed: June 23, 2021).
American Psychological Association (APA):
Analysis Of Variance. PayrollHeaven.com. Retrieved June 23, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/analysis-of-variance/

Definition Sources

Definitions for Analysis Of Variance are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th January, 2020 | 180 Views.