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# pERCENTAGE vARIANCES

harryb
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**62**
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

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

0

## Comments

21To 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

in the answer booklet you can see a table in task 3 with adjusted and unadjusted amounts..

I hope this helps!!

Maysa

259622,034I 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)

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