Variance analysis to changes in return of investment

Abstract

This paper applies the Variance analysis approach developed by Robert F.Lusch and William F. Bentz for analysing changes in return on investment of three units: DCM, Hindustan Lever and TELCO. It identifies the different factors that explain the difference or change in two ROI rates. Both an inter-period and inter-unit comparison have been made. The analysis is useful for purposes of financial reporting to shareholders. It can also be used for management planning and control.