variance-analysis

name	variance-analysis
description	Produce a structured budget-vs-actual variance analysis

Variance Analysis

Produce a structured variance analysis comparing budget to actual figures.

Required inputs

Ask the user for:

• Period (e.g., Q2 2026, June 2026)
• Line items or categories to analyze
• Budget figures and actual figures
• Materiality threshold for flagging (default: 5% or $10K)

Analysis structure

1. Summary table

Line Item	Budget	Actual	Var ($)	Var (%)	Flag

Flag items exceeding the materiality threshold with a marker.

2. Favorable / Unfavorable classification

Group variances by:

• Favorable: actuals better than budget
• Unfavorable: actuals worse than budget

3. Root cause commentary

For each flagged variance, provide:

• Likely cause (volume, price, timing, one-time)
• Whether the variance is expected to recur
• Suggested action (investigate, adjust forecast, none)

4. Net impact

Summarize the total favorable and unfavorable impact on the bottom line for the period.