To prepare for this Discussion:

• Consider the role of variance analysis in decision making and how understanding variances, both favorable and unfavorable, might help contribute to improved organizational efficiency.
• Identify an example from your professional career in which both highly favorable and unfavorable variances occurred.

Post an explanation of the role of variance analysis in managerial decision making, to include the following:

• Describe an example from your professional career in which both highly favorable and unfavorable variances occurred.
• Identify what stakeholders were most affected by these variances.
• Explain how understanding these variances could have helped you as a manager in this situation to make better decisions.