When Variance Analysis Lies: Rebuilding Cost Accounting for the Climate-Sensitive Manufacturer
Standard variance analysis was designed for a more predictable era — one where atmospheric conditions were background noise rather than a primary driver of manufacturing cost. As climate volatility intensifies, manufacturers relying on conventional cost accounting frameworks are systematically misreading their own operational performance, misallocating capital, and rewarding the wrong facilities. A growing cohort of forward-thinking enterprises is rewriting the rules.