BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -actuals is a comparison of two or more sets of data. It’s the variation (difference) between actual amounts and what was planned or budgeted.

Detailed explanation-2: -By knowing the difference between your projected budget and the amount you end up actually spending, you can: Adjust your data to make more accurate budget predictions in the future (as part of your recurring budgeting process.) Discover new ways to save on the budget or increase it later if necessary.

Detailed explanation-3: -The difference between the actuals and your budget reflects your budget variance. A favorable variance shows positive numbers for your key performance indicators. For instance, favorable variances may include: Greater sales than forecasted.

Detailed explanation-4: -A variance report is a document that compares planned financial outcomes with the actual financial outcome. In other words: a variance report compares what was supposed to happen with what happened. Usually, variance reports are used to analyze the difference between budgets and actual performance.

Detailed explanation-5: -A budget variance is an accounting term that describes instances where actual costs are either higher or lower than the standard or projected costs. An unfavorable, or negative, budget variance is indicative of a budget shortfall, which may occur because revenues miss or costs come in higher than anticipated.