What is permanent variance?
A variance in which the result did not occur as expected or the underlying assumption changed (e.g., an insurance premium resetting higher). The model should be updated for every future period.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.