Film Accounting Glossary
Variance report
What is a variance report?
Also called variance narrative, or cost report narrative.
A variance report is the narrative accompanying the cost report, explaining each material difference between budget and estimated final cost and what is being done about it.
It is where the numbers become a management document: weather days, a cast change, an added vehicle, a rate that was underbudgeted. Studios and completion guarantors read the variance report before the spreadsheet, because it is the only part that says why.
Example
Three lines of narrative do more than the spreadsheet: two weather days added $96,000 of crew and standby; a cast replacement added $140,000 above the line; a set dressing saving of $60,000 partly offsets both. Studios and guarantors read this before the numbers.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Written weekly alongside the cost report by the accountant and line producer. The only part of the reporting pack that says why.
Common mistake
Sending the numbers without the narrative. The spreadsheet says what changed; only the narrative says why, and that is what readers act on.
Related questions
- What goes in a variance report?
- A short written explanation of each material difference between budget and estimated final cost, and what is being done about it.
- Who writes the variance report?
- The production accountant with the line producer, weekly, alongside the cost report it accompanies.