ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Money that is left over after deductions and taxes have been taken out.
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A measure of the changes in prices for commonly purchased goods and services in the United States.
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The difference between the budgeted amount and the actual amount that you spend.
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None of the above
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Detailed explanation-1: -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-2: -The difference between the planned and actual numbers is variance, and it’s crucial to minimize it, especially if you’re a startup or small business. You can consider the difference between the budget amount and actuals as either favorable or unfavorable.
Detailed explanation-3: -A variance is the difference between actual and budgeted income and expenditure.
Detailed explanation-4: -Actuals are defined as the – the actual expenses and actual income generated throughout the year that contribute to actual revenue and cash flow. The difference between the actuals and your budget reflects your budget variance. A favorable variance shows positive numbers for your key performance indicators.