JOURNAL OF ACCOUNTING AND FINANCE
The Application of Variance Analysis in FP&A Organizations: Survey Evidence and Recommendations for Enhancement
Author(s): Thomas E. Conine, Michael B. McDonald IV
Citation: Thomas E. Conine, Michael B. McDonald IV, (2017) "The Application of Variance Analysis in FP&A Organizations: Survey Evidence and Recommendations for Enhancement", Journal of Accounting and Finance, Vol. 17, ss. 8, pp.54-70
Article Type: Research paper
Publisher: North American Business Press
Accounting Variance Analysis, a tool widely taught in academic environments, is important to the financial planning and analysis (FP&A) departments of firms. However, there is a dearth of evidence on how variance analysis is really applied in practice. Investor relations quarterly presentations demonstrate a wide variety of formats and variance buckets. Our survey of the FP&A department of organizations finds that while variance analysis is viewed as a very valuable tool, there is significant variation on its actual use. We conclude with recommendations to improve usage of variance analysis.