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e analysis making out why there are variations in a budget and subsequently creating strategies to address the problem (Laureate Education Inc, 2012). The fact that analyzing the budget reflects the internal financial situation or performance denotes how variations can be identified.
Catherine Schneider, your writing also clearly explains the value of variance analysis in decision making. I concur that variance analysis enhances accountability (Zelman, McCue and Glick, 2009) as it is similarly the case in my organization. Analyzing the budget will help identify departments where variations are occurring and the department manager is answerable for any mismanagement of funds. This drives the departmental managers into making more effective pronouncements in terms of staffing and supportive action plans such as trainings to improve employees skills and abilities. This clearly shows that variance analysis determines how managers make decisions. In other words, it forces managers to make more effective decisions. I also agree that variance analysis may reveal the need to expand the budget and give data and information to support the claim. This means that decisions to expand a budget is dependent on budget
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