Answered! 1.Variance analysis is a traditional tool used for planning and control. Comment on advantages and disadvantages of using this approach for performance evaluations….

 1) Variance analysis is a good tool which can be used for planning and control as it displays the true nature of the information at hand. If your growth is less than or more than expected, it means that you have either performed well or have slipped up with regards to competitors in the market. If your profits are increasing, you may have cracked your market better than your competition. This analysis will help in improving your forecasts and other associated planning. You can also see if the causes for variance can be controlled or not. For performance evaluations, it is best to use variances that are controllable, as that leads to an evaluation that is fair and objective.