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Retail & Allocation lesson

Variance

% of target says how close. Variance says how much money that is.

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About 5–10 minutes · no sign-up needed

The idea

% of target says how close. Variance says how much money that is:

Formulas

Sales − Target

Key points

VarianceThe gap between what happened and what was planned, in dollars.
Work it outTake the target away from sales.
Read itNegative means short of target, positive means ahead. Report it with %: "$3,000 short, 80% of target".

Report variance in dollars and in %: together they tell the whole story.

Practice

Try each one in your head first, then open the answer.

1. What is Calgary's variance to target, in dollars?
$8,000 − $10,000 = −$2,000
2. In D2, work out Toronto's variance to target: sales − target.
=B2-C2
3. Tap the store furthest below target, in dollars.
Toronto is $3,000 short of target.
4. Toronto and Calgary both reached 80% of target. Why is Toronto's variance bigger?
Toronto's target is bigger, so 20% short is more money

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed