Question

When it comes to variance analysis and standard costing, how can you apply this concept to your personal life? How can you apply it in your workplace?

Answer 1

Variance Analysis means analysing the difference between actual figures and targeted figures and standard costing means estimated cost of doing any particular thing

This is very much useful in our personal life as well as workplace or professional life

By using Variance analysis in my personal life i can figure out what did i plan for my life and in turn what actual did it turn out to be and how did it affect my personality

For eg Taking Weight loss as a challenge

By using Standard costing i will estimate the weight i wish to lose

and by Variance Analysis i shall check the actual and planned weightloss i achieve did i achieve the target or was i lacking behind

At my workplace : Taking an assignment as an example

First of all by standard costing i should estimate a time i should take to complete the assignment

Then via variance analysis i should check that what is the difference between my actuals and my planned

did i do it before time or did i take more time than usual to achieve it