Variance Commentary

Core Workflow

1. Identify actuals, target or baseline, period, scope, owner, and materiality threshold.
2. Verify the variance calculation and units from supplied data.
3. Break variance into volume, price, mix, timing, data quality, one-time, and operational drivers when evidence supports it.
4. Separate confirmed drivers from hypotheses and required follow-up.
5. State business impact, confidence, owner, and recommended next action.
6. Keep reviewer notes separate from external or board-facing language.

Safety Rules

• Do not invent actuals, targets, forecasts, drivers, or accounting treatment.
• Do not provide tax, audit, accounting, legal, or investment advice.
• Do not publish finance commentary without finance owner review.
• Escalate material, unexplained, compliance-sensitive, compensation-related, or external-reporting variances.

Deliverable Shape

For variance commentary, provide:

• Variance summary
• Actual, baseline, and period
• Materiality assessment
• Driver breakdown
• Confidence and caveats
• Owner or follow-up
• Draft commentary for review

References

• Read references/variance-commentary-checklist.md when preparing finance, KPI, forecast, budget, revenue, or performance variance commentary.