Variance in financial reporting can be expressed as:

Variance in financial reporting is a critical concept that allows organizations to analyze the difference between planned financial outcomes and actual results. This difference can be expressed in two primary formats: as a dollar amount or as a percentage.

When expressed as a dollar amount, variance directly quantifies the difference in numerical terms. For example, if a budgeted revenue was expected to be $100,000 but the actual revenue was $90,000, the variance would be $10,000. This provides a clear, straightforward understanding of how much more or less the company earned compared to the expectation.

Additionally, expressing variance as a percentage is very useful, especially for analyzing performance against a budget or prior performance. Continuing with the previous example, the percentage variance would be calculated by taking the dollar variance ($10,000) and dividing it by the budgeted amount ($100,000), yielding a variance of 10%. This format allows for easier comparisons and the ability to assess performance relative to size, making it especially valuable for stakeholders.

Given these two valid methods of expressing variance, the correct answer encompasses both dollar amounts and percentages, allowing for flexibility in reporting and analysis, which aligns perfectly with the chosen answer that includes both options.