Operating Plan Variance
Definition
The difference between actual financial results for a period and the corresponding figures in the approved annual operating plan for that period, expressed in absolute terms and as a percentage of plan. Every material operating plan variance must be explained in the monthly management accounts with a written statement of the cause and the expected duration of the deviation.
Common Misapplication
The most common misapplication is reporting variance only for revenue while omitting variance for expense categories. A company that meets its revenue plan but significantly exceeds its expense budget has a material operating plan variance that must be reported and explained.
FFI Standard Reference
This term is defined and applied in Book 6, Section 6.1: The Annual Operating Plan Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Operating Plan Variance. https://ffistandard.org/glossary/operating-plan-variance/. 2026.