Variance Analysis Important : This skill assists with variance analysis workflows but does not provide financial advice. All analyses should be reviewed by qualified financial professionals before use in reporting. Techniques for decomposing variances, materiality thresholds, narrative generation, waterfall chart methodology, and budget vs actual vs forecast comparisons. Variance Decomposition Techniques Price / Volume Decomposition The most fundamental variance decomposition. Used for revenue, cost of goods, and any metric that can be expressed as Price x Volume. Formula: Three-way decomposi…