Calculation of deviations of various indicators is the basis of the analysis of the economic activity of the enterprise. Such calculations allow you to predict the results at the end of the planning period. Comparison of the plan and the actual result helps to deeply explore the real reasons that affect the development of the organization in the near future.
Instructions
Step 1
Absolute deviation It is obtained by subtracting the values. Expressed in the same values as indicators. The absolute deviation expresses the existing ratio between the planned indicator and the actual or between the indicators of different periods. Moreover, if the actual turnover is ahead of the planned one, then the absolute deviation is recorded with a plus sign, while the decrease in actual costs, despite the positive effect of this fact on the profit of the enterprise, is recorded with a minus sign.
Step 2
Relative deviation It is obtained by dividing the indicators by each other. Expressed as a percentage. Most often, the ratio of one indicator to the total value or the ratio of the change in the indicator to the value of the previous period is calculated. For example, to calculate the relative deviation of utility costs, you need to divide them by the total cost of production. And if the resulting indicator is multiplied by the cost of 1 unit of manufactured products, then as a result you can find out what is the share of utility costs in the cost of this unit.
Step 3
The use of relative deviations significantly increases the information content of the analysis of the financial and economic activities of the enterprise and shows changes more clearly than the use of absolute deviations. For example, in January the company received 10,000 rubles in profit, and in December this figure was 12,000 rubles. In comparison with the previous period, the company's revenue decreased by 2 thousand rubles. This figure is perceived not as sharply as the deviation in percentage: (10000-12000) / 12000 * 100% = -16.7%. The decrease in profit by 16.7% is very significant. This may indicate serious sales problems.
Step 4
Selective deviations This value is calculated by comparing the monitored indicators for a certain period with similar indicators of the last year, quarter or month. Expressed in ratios. For example, a comparison of the values of a month with the same month of the last year is more informative than a comparison with the previous month. The calculation of selective variance is more relevant for enterprises whose business depends on seasonal fluctuations in demand.
Step 5
Cumulative deviations This is nothing more than the ratio of the amounts calculated on an accrual basis from the beginning of the period to similar indicators of previous periods. Cumulation compensates for random fluctuations in activity parameters, helping to accurately identify the trend.
