A STUDY ON VARIANCE ANALYSIS AND ITS EFFECT ON PROFITABILITY AT VARSHA MULTI-TECH RAJAJINAGAR

A STUDY ON VARIANCE ANALYSIS AND ITS EFFECT ON PROFITABILITY AT VARSHA MULTI-TECH RAJAJINAGAR

Author

Ms. Pallavi S S USN-1VA21BA035

Department of Management Studies, Sai Vidya Institute of Technology, Bengaluru-64.

Co-Author

Dr. D Jogish Professor & HOD

Department of Management Studies, Sai Vidya Institute of Technology, Bengaluru-64.

ABSTRACT

The vital area of analysis of variance and its substantial effects on corporate profitability are explored in depth in the current research. One of the most important technique for determining the discrepancy between expected and actual results, providing insight into the efficacy and efficiency of management choices. This study methodically examines the many facets of variations, including both positive and negative departures from expected performance. This study reveals the complex causal links that explain variations in profitability by analysing the complicated interplay among cost, revenue, and operational variances. The paper explains each of the ways that variance analysis effects strategic choice and resource allocation through a thorough examination of pertinent literature and direct observation of various sectors. The results highlight the crucial role variance analysis plays in spotting operational inefficiencies, maximising resource use, and promoting a continuous improvement culture inside organisations. In the end, this study adds to a comprehensive knowledge of how variance analysis functions as a compass for guiding companies towards increased profitability in the face of dynamic and difficult market conditions.