Variance describes the difference between an expected value and the actual value. As an example, a cost variance would be calculated by subtracting the actual cost from the budgeted cost; a cost overrun would result in a negative variance. In inventory control, when undertaking a stock count, if the physical stock differs from the ledger stock this will be a variance and the output of the stock check will be a variance report highlighting the scale and direction of the stock check variance. See also Stock Control.

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Discover the world’s largest Glossary of Procurement terms

With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.