variance

1. A statistical measure of the variability of measured datum from the average value of the set of data. A high variance, indicating relatively great variability, also indicates that the average is of minimal use in projecting future values for the data. Standard deviation is the square root of variance. Compare covariance. See also risk.
2. In real estate, an exception to current zoning requirements that permits an owner to utilize land in a manner not normally permitted. For example, a property owner might seek a variance to build a self-storage facility in an urban redevelopment zone.
3. In accounting, the difference between actual and budgeted costs for labor and raw materials used in production.