This portion of the book provides information and guidance on closing procedures related to variance analysis.

In accounting, a variance is the difference between a budgeted, planned, or standard cost, and the actual amounts on the financial statements. Understanding how to perform a variance analysis is vital for IU to accurately plan for future activities. Variance analysis of budgeted to actual amounts helps management determine how funds should be allocated in the future. Variance analysis can also assist with identifying accounting errors. By completing the variance analysis by entity, documentation to support some of IU’s largest fluxes are easily accessible and can be provided to auditors upon request.