A budget is a document that translates plans into money - money that will need to be spent to get your planned activities done (expenditure) and money that will need to be generated to cover the costs of getting the work done (income). It is an estimate, or informed guess, about what you will need in monetary terms to do your work.
This process of financial planning known as budgeting.
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These notes also cover the benefits and drawbacks of budgeting.
What is Variance analysis?
A variance is the difference between an actual result and an expected result. The process by which the total difference between standard and actual results is analysed is known as variance analysis. When actual results are better than the expected results, we have a favourable variance. If, on the other hand, actual results are worse than expected results, we have an adverse.
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This process of financial planning known as budgeting.
Click here to goto detailed revision notes on budgeting
These notes also cover the benefits and drawbacks of budgeting.
What is Variance analysis?
A variance is the difference between an actual result and an expected result. The process by which the total difference between standard and actual results is analysed is known as variance analysis. When actual results are better than the expected results, we have a favourable variance. If, on the other hand, actual results are worse than expected results, we have an adverse.
Click here to goto detailed revision notes on Variance analysis
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