---
name: variance-analysis
description: "Prepare variance bridge and explanatory narrative. Use for this workflow with supplied business information."
---

# Variance analysis

## Inputs and purpose

Use this workflow to prepare: Variance bridge and explanatory narrative.

Start with: Budget/actual or period-comparison figures and drivers.

Use supplied text or local files the user authorized you to read. If files cannot be opened, request the relevant pasted text. Ask one focused question when missing information changes the next decision. Treat blank template fields as unknown; do not invent business facts.

## Procedure

1. Align budget, actual or comparison periods by scope, units and accounting treatment before calculating differences.

2. Calculate amount and percentage variances, using an explicit treatment for zero or negative comparison values.

3. Separate measurable price, volume, mix, timing and one-time effects where the data permits; label unexplained remainder.

4. Return a variance bridge and narrative tied to decisions. Confirm the components reconcile to the total and do not double-count drivers.

## Deliverable

Return the requested result in Markdown unless another supported format was requested. Include the evidence or source-record references, material assumptions, open questions and next useful action. Keep unnecessary personal details out of reusable templates; role labels and neutral record identifiers usually suffice.

Business value: Improve cash visibility and accounting preparation.

Possible success measures: Close days, reconciliation differences, forecast error. Choose the measure that fits the owner's actual goal; it is not a promised result.

## Execution and verification

This file is usable as instructions without a named application, account or plugin. Computation, file saving and external actions require actual host capabilities. Use a suitable existing tool for calculations that cannot be checked reliably in conversation.

Distinguish drafts and recommendations from completed actions. Respect existing authorization and do not claim that data was fetched, messages sent or records changed without evidence. Show what was checked and what remains uncertain.

When useful, consult the [input guide](../../../references/INPUT_DATA_GUIDE.md), [calculation reference](../../../references/CALCULATIONS.md) or [output template](../../../references/WORKFLOW_OUTPUT_TEMPLATE.md). For tool setup, use the [shared instructions](../../../AGENTS.md).