Budget Variances
- Created by: ellenogorman
- Created on: 01-07-18 15:46
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- Budget Variances
- What is a budget?
- A financial plan for the future concerning the revenues and costs of a business
- What is budgeting?
- An important role of the financial control of business
- Management prepare the individual budget e.g a sales or cost budget
- They go through the year or time period, and look at how the actual results compare with the budgeted results.
- The difference is variances- if these variances are significant they take a look to see why a difference has arisen
- They go through the year or time period, and look at how the actual results compare with the budgeted results.
- Variance Analysis
- Involves calculating and investigating the differences between actual results and the budget
- What is a budget?
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