# pERCENTAGE vARIANCES

hey guys, question for you

how are percentage variances worked out? Im relating to Unit 31:Task 1 ... they have to relate to actual figures from 2005 and 'index-adjusted(not sure what these are if anyone could met me no it would be a great help?) figures for 2004?

Thanks

• hi not sure this will help. I'm not sure which question of the part 1 exam you are.. but i imagine you are asking about task 4

To calculate percentage variances in task 4:

A-B divided by B x 100

(Actual 2005 minus indexed 2004 divided by actual 2005 x 100)

i.e: 3,771,800 - 3,591,492 = 180,380/ 3,591,492 x 100 = 5.02%

The figures of 2004 are in task 3 and the figures of 2005 are in task 1

I hope this helps!!

Maysa
• Trusted Regular Posts: 259Registered
i'll second that answer! golly what would we do without this forum!
• thanks very much, so a-b divided by b x 100? ... bcos what you have in the brackets underneath suggests it would be a-b divided by a x 100? or am i hallucinating? ha
• Font Of All Knowledge Posts: 2,034Registered, Moderator
I recently verified a unit 4 skills test and was disappointed with the mathematical approach taken.
I would be far happier with an approach to variances that looked at how much we expect (say wages) cost to be, how much it really was and then identified the difference (variance).
If we spent more than expected, then it would be an adverse variance.
If we spent less than expected, then it would be a favourable variance.

Strictly the variance % should be the variance divided by how we expected the cost to be (x 100)
Sandy
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