ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A variance is the difference between actual and budgeted income and expenditure.

Detailed explanation-2: -Budgetary control is financial jargon for managing income and expenditure. In practice it means regularly comparing actual income or expenditure to planned income or expenditure to identify whether or not corrective action is required.

Detailed explanation-3: -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.

Detailed explanation-4: -Make sure the budget you have prepared includes all the key indicators you wish to control. Use budgeting software to set realistic budgets based on historical data. Give responsibility for budget items only to individuals with the authority to control the outcome. More items