ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Occurs when actual spending is less than budgeted spending.
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surplus
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deficit
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Either A or B
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None of the above
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Explanation:
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: -A budget surplus is when the government’s earnings are more than the spending. On the other hand, in a budget deficit, government spending is more than its income. It may happen when the government collects fewer taxes or starts spending more.
There is 1 question to complete.