Variances (variance analysis) (AO2, AO4) (HL only)A variance refers to a discrepancy between the planned (budgeted) item of expenditure or revenue and the actual amount. For example, if Warner Bros. Studios planned to spend $150 million on producing a Hollywood movie, but ended up spending $180 million, then there would be an unfavourable variance of $30 million. Similarly, if Foxconn, Taiwan’s largest manufacturer,...