A variance analysis report compares the estimated cost to the actual cost during a set period of time. When creating a report it is important to consider all the different aspects that go into the organization. Although some aspects predicted in a budget are correct others need to be adjusted in order to keep an organization rumling cost effectively. When variance issues occur it is placed in tlie hands of Health Care Administrators to justify why and adjust the budget accordingly. In this paper I will discuss what goes into a variance report, the relationship between an operational variance report and actual performance results and the various variance issues in Healthcare Organizations