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The measurement of the difference between two comparable numbers in a data set is known as Variance. Variance determines the distance of each number in the data set from the mean. The Variance calculation is explained in a simple way inVariance Assignment Help Online Service. We can calculate the Variance by taking the differences between each number in the set and the mean and then squaring the differences and dividing the sum of the squares by the number of values in the set. The differences between the numbers are squared in order to make them positive. In statistics, Variance is used for probability distribution. Variance measures the variation or variability or volatility from an average or mean, the Variance statistic determines the risk of an investor while purchasing a specific security. When all values within a set of numbers are identical, a Variance value indicates zero. The non-zero variances are always positive numbers. When the numbers from the set are far away from each other, then the variance is large. When the numbers from the set are close to each other, then the variance is small. In order to see how each number is related to each other in a set of data, variance is used by the statisticians instead of using broader mathematical techniques like arranging numbers into quartile.

### Merits Demerits and Types of Variance

The advantages of Variance calculation is explained in details by Variance Assignment Help Online Service.

• The variance gives an overall view of the group covered by the data set.

• The variance remains relatively steady or unchanged.

• Helps the statistical researchers to verify the results.

• Variance calculation can easily indicate collation or calculation error between 2 studies.

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### The demerits of Variance calculation is-

• It involves squaring action during calculation.

• Variance calculation cannot immediately compare the variance figure to individual data points.

• For meaningful comparison, we need to calculate the standard deviation.

**The types of Variance are:** -In Cost accounting, in order to increase the efficiency of a company’s performance, the calculation of variance is very important. When the standard cost is less than the actual cost or actual revenue is less than standard revenue, then the variance is known as Favorable Variance. But when the actual cost is less than standard cost or standard revenue is less than actual revenue, and then the variance is known as Unfavorable Variance or Adverse Variance.

### The different types of Variance are given in details inVariance Assignment Help Online Service.

- 1. Direct Material Variance: –

This is the type of variance in which the variance shows the difference between actual cost of material in actual unit and standard cost of material in standard unit.

- 2. Labor Variance: –

Here the variation in the labor cost is determined by the variance.

- 3. Overhead Variance: –

here the value of all the indirect cost is been shown.

- 4. Sales Variance: –

This shows the difference between actual sales and standard sales.

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