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variance investment & finance definition
- An exception to zoning rules established by a city government. For example, a zoning variance may be granted to allow business activity in an area zoned for residential use.
- In accounting terms, the difference between the actual costs incurred to purchase materials and the standard costs for material, labor, and overhead. A positive variance occurs when the actual costs turn out to be lower than the standard or anticipated cost.
- In budgetary terms, the difference between the amount budgeted and the actual expense.
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