Difference between wastage and variance

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Accepted Answer

Wastage refers to the unused resources or materials, while variance refers to the difference between planned and actual results.

Wastage is the loss of resources due to inefficiency or spoilage, while variance is the difference between planned and actual results.
Wastage can be physical (e.g. spoiled inventory) or non-physical (e.g. wasted time), while variance is usually financial in nature.
Examples of wastage include unused raw materials in production, while examples of variance include differences in budgeted and actual costs.
Wastage can be reduced through better resource management, while variance can be analyzed to identify areas for improvement.
Both wastage and variance can impact a company's profitability and efficiency.

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