Question

What are the three way variance, if properly used, can help managers implement and e valuate strategies in three ways:

Answer 1

Variance analysis helps managers in validating the effectiveness of strategies, improving estimations and forecasts, and streamlining the strategy evaluation process, all of which facilitate dynamic and effective management.

Step-by-step explanation:

Three ways variance can help managers implement and evaluate strategies include:

1. Validating Strategies: By approaching a problem through variance analysis, managers can validate the effectiveness of different strategies, ensuring they are flexible and can adapt to real-world results versus forecasts.
2. Improving Estimations: Managers can use variance to develop more accurate budgets and forecasts by understanding how different variables may relate and adjusting strategy accordingly.
3. Streamlining Evaluations: With variance analysis, the evaluation of strategies can be made understandable and actionable, allowing managers to comprehend outcomes and refine strategy execution.

Using variance analysis in these ways enables a management team to adapt their business strategies in a dynamic environment effectively.