MANAGEMENT

Detailed explanation-1: -Master budget acts as summary budget acts as summary budget incorporating its component functional budgets and which is finally approved adopted and employed.

Detailed explanation-2: -In short, your budget represents the numbers your startup expects to hit, while actuals are the numbers you’ve achieved in reality. When combined with your financial forecast, this is what each represents: Budget: What your startup expects to achieve. Actuals: What your startup actually achieved.

Detailed explanation-3: -A variance report is a report that compares actual costs and sales amounts with budgeted data and analyzes the differences between the two. The differences are termed as either favorable variance or unfavorable variance.

Detailed explanation-4: -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.