Finance Variance Analysis

Purpose

Explain a variance — actual vs. plan, actual vs. prior period, or actual vs. forecast — with decomposition (volume / price / mix / FX / timing), driver attribution, run-rate impact, and management-voice commentary. The deliverable supports management review, board reporting, MD&A drafting, and forecast-revision decisions.

Scope Constraints

• Produces the variance bridge, decomposition, and commentary; does not revise the forecast (handoff to finance-forecast-update once available) and does not produce SEC disclosure language (handoff to finance-disclosure-language for MD&A drafting).
• Operates on closed actuals — does not opine on whether close-cycle accruals are correctly stated (handoff to finance-reconciliation if a balance is suspect).
• Does not score the forecast process itself; this is a backward-looking analysis.

Inputs