variance


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Related to variance: standard deviation, variance analysis

Variance

A measure of dispersion of a set of data points around their mean value. The mathematical expectation of the average squared deviations from the mean. The square root of the variance is the standard deviation.

Variance

1. In accounting, the difference between the estimated and actual cost of a project or other operation.

2. In risk, the average deviation of a set of data points from their mean.

variance

A statistical measure of the variability of measured datum from the average value of the set of data. A high variance, indicating relatively great variability, also indicates that the average is of minimal use in projecting future values for the data. Standard deviation is the square root of variance. Financial analysts use both statistical measures to weigh investment risk. Compare covariance. See also risk.

variance

  1. the difference between budgeted and actual results (see BUDGETING), or between STANDARD COSTS/revenues and actual costs/revenues. Variances can be:
    1. adverse or negative when actual revenues fall short of budget or standard, or when actual costs exceed budget or standard;
    2. favourable or positive when actual revenues exceed budget or standard, or when actual costs are less than budget or standard.
    3. a measure of variation within a group of numerical observations, specifically the average of the squared deviations of the observations from the group AVERAGE.

      See STANDARD DEVIATION.

variance

Permission to use a property in a manner that does not meet current zoning requirements.In order to gain a variance,the property owner usually has to show a hardship on the property—not on the owner—if the requested use is not allowed. It is considered a hardship if the property will otherwise remain vacant or if a structurally sound improvement must be demolished to allow some other use. Buyers with a signed purchase contract can usually petition for a variance; this is commonly one of the steps in a due diligence plan that must be completed in a satisfactory manner before the buyer will purchase property.

References in periodicals archive ?
DRW Investments, developer of the variance conversion methodology, has started its market making activity recently.
Wednesday night, after the Zoning Board of Appeals allowed him to withdraw his variance application without prejudice, Mr.
Also shown are the following two reminders to the students: (1) in standard costing variance calculations, the mathematical sign in the answer is dropped and it is replaced with either a Favorable designator (if the actual cost is less than standard) or an Unfavorable designator (if the actual cost is greater than standard) and (2) the Standard Quantity is the standard for one unit times the actual number of units produced (for example, the standard quantity for materials in Exhibit 1 is three pounds times 120 units).
SOME EQUIPMENT IS NOT AUTHORIZED A VARIANCE BECAUSE THE SERVICE IS CONSIDERED TOO CRITICAL.
Unfortunately, as traditionally computed and reported, the volume variance falls far short of enabling managers to correctly identify the causes generating this variance.
IPH's variance petition seeks the same relief as the existing variance granted to AER in September 2012, in which the IPCB recognized both the environmental and economic benefits of doing so.
Total material cost variance for ingredient A Standard cost: 9,000 units x 4kg x $25/kg $900,000 Actual cost: 35,000kg x $26/kg $910,000 Material cost variance $10,000 (A) Divided into material price variance.
These methods then ask how much of the rise in the variance of income is coming from changes in the variance of the transitory piece and how much from changes in the variance of the persistent piece.
A variance is a regulatory action that permits an employer to deviate from the requirements of an OSHA standard under specified conditions.
FTSE Group has announced the launch of the FTSE Global Minimum Variance Index Series.
This paper examines trends in the instability of personal incomes in Britain in terms of changes in the transitory variance and in volatility, measures that have received much recent attention in research about the USA.
Using your budget to perform solid variance analyses allows you to finish the story: to see how the company performed, when it deviated from the plan, and why those deviations occurred.