When Your Budget and Reality Differ
BECAUSE ALL BUDGETS are based on assumptions about what might happen in the future, actual business results for the future time period stipulated in a particular budget may not reflect what was in the budget. Below are some insights into how you might respond to this situation.
What is variance?
The difference between the actual results produced by your department or unit and the budgeted results you’ve planned for is called the variance. Comparison of actual to budgeted results allows you to consider whether corrective action is needed. The variance can be favorable, when the actual results are better than ...
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