PM Budgeting and Control, Performance Analysis, and Variance Analysis in Not-for-Profit Organizations

May 9, 2026

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PM-Budgeting and control content explains how to conduct performance analysis using variance analysis while accounting for the interaction between favourable and adverse variances across areas. It outlines risks of judging management by variance results alone and proposes separating variances into uncontrollable and controllable components. Standard costing guidance focuses on setting realistic, attainable-but-challenging standards to avoid unrealistic targets and demotivation. The discussion then connects JIT production and total quality management, highlighting incompatibilities with variance and standard costing due to narrow cost focus, quality blind spots, product volume assumptions, labour/overhead distortions, and inability to handle changing conditions. It further addresses performance management in not-for-profit and public-sector settings by prioritizing non-quantifiable objectives and using economy, efficiency, effectiveness, VFM, and mixed financial/non-financial indicators.

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May 9, 2026