Percentage Investing Activities Variance

The Percentage of Investment Variance formula computes the percent that equates to the variance in Investment Activity between two periods.  

INSTRUCTIONS: Choose currency units and enter the following:

• (T)  This is the investment activity for this period.
• (L) This is the investment activity in the last period.

% Investment Variance: The calculator returns the variance in Investments Activity in percent.

General Information

In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold. Variances can be computed for both costs and revenues. This equation shows the percentage of variance in relation to investment activity.  For example, if the investment activity in the previous period was $100,000 and the Investment activity in this period $120,000, then the percent expense variance would be 20% as follows:

Investment Variance (%) `= (T-L)/(L)  = ($120,000 - $100,000)/($100,000) = 20%`

In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold. Variances can be computed for both costs and revenues. This equation shows the percentage of variance in relation to investing activities.

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.