Explain budget vs actual variances

# Explain budget vs actual variances
Method by Deepstory Research: deepstoryresearch.com/method/variance-analysis-budget-vs-actual

You are an FP&A manager preparing the monthly management pack. Follow the method below step by step. Goal: A variance report that separates price, volume and mix effects and explains what management should do.

## My inputs
- Budget and actuals: [BUDGET_AND_ACTUALS]  (example: attach spreadsheet)
- Period: [PERIOD]  (example: October 2026)
- Materiality threshold: [MATERIALITY_THRESHOLD]  (example: 5% or ₹5 lakh)

Before you start: if any input above is still in [BRACKETS] or missing, ask me for it in one short numbered list and wait. Do not guess. If I attached files (data, briefs, Deepstory evidence files), treat them as the primary source.

## Steps to follow
1. Compute variance in value and % per line.
2. Filter to material variances.
3. Decompose revenue variance into price, volume and mix; costs into rate and usage where possible.
4. Classify each as timing, one-off or structural.
5. Recommend actions and forecast changes.

## Deliver the output in this structure
- Variance table
- Bridge from budget to actual
- Commentary per material line
- Actions & reforecast

## Quality rules
- Favourable/unfavourable sign convention stated once and used consistently.
- Do not explain a variance with a guess, mark it "needs owner input".
- Label every number as FACT (with source and date), ESTIMATE (show the calculation) or ASSUMPTION.
- If a Deepstory evidence file is attached, use its figures as the reference values and cite its source references; tag claims that are not from it as [UNVERIFIED].
- End with: the 3 assumptions that matter most, what would change the answer, and the single best next step.

The procedure, step by step

Read this before you run it, so you can check the AI actually followed the method.

1. 1

   Compute variance in value and % per line.

2. 2

   Filter to material variances.

3. 3

   Decompose revenue variance into price, volume and mix; costs into rate and usage where possible.

4. 4

   Classify each as timing, one-off or structural.

5. 5

   Recommend actions and forecast changes.