Question

advantages of using performance indices v. variance analysis?

Answer 1

The performance indices are the index that gives the idea of how well the business if performing ion the planned agendas like time, cost, critical issues like aspects that suggest the way the process is going. The variance analysis makes the best for the people or businesses to use to understand the qualitative outcomes of the process. Hence the advantages of using the performance indices to its variances analysis are:

· The indices give a qualitative outcome which is quantifiable to understand the pace of the process or outcomes in numerical,

· The indicators are meant to show one value at a time which has to be chosen by the analyst for the researcher to understand the processing pace to the time given for an example,

· The variance analysis is a qualitative process that may not show the variation in the quantitative ways but the qualitative difference if any is found but only after completion.

· The performance index like time, cost, man-hours are indicators which are performance indicators which has nothing of its own time so the variation can be traced in numbers.

· The variations in the performance indices to get in qualitative form in the analysis but the qualitative indices suggest its shortcomings for the business to be consistent in the results.