Variance analysis that ranks by what matters

Your monthly variance report has 60 line items and 60 percentage changes.

Before you use the output

• The freight/stock connection is an inference. Verify it by actually checking closing stock — if stock did not rise, the timing theory is wrong and freight needs a different explanation.
• The raw-material price-versus-volume question is the most important one and the figures alone cannot answer it. Do not write commentary until you have.
• Confirm the machine-replacement question reaches someone who can act on it. A capex issue surfacing inside an opex variance is easy to lose.
• Check that nothing below the 85% cumulative line is material for a non-financial reason — a small variance on a regulated line can matter more than its size.