Adopting the variances analysis as a mechanism for rationalizing costs in Algerian industrial enterprises : a case study of a Saida cement company's

الملخص EN

The study aims to know the role of variances analysis in rationalizing costs.

The calculating the variances depends mainly on the stander budgets, where it compares all expectations with the achievements, then treats them and takes the necessary measures.

The variances were analyzed from the budget components of the Saida Cement Company's for the years 2018 and 2019 were analyzed to find out whether they were favorable or unfavorable in order to reveal the role they play in controlling costs.

The results showed that the analysis of variance has a large and effective role in rationalizing the costs of the industrial Companies'.

It also showed that the most unfavorable variances were in sales variance, and concluded that Saida Cement Company's took advantage of the unfavorable outcome variance in 2018 in order to achieve a positive outcome variance in 2019 by rationalizing variable costs.