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variance definition - finance
  1. 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.
  2. 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.
  3. In budgetary terms, the difference between the amount budgeted and the actual expense.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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