Skip to content

Accounting Variance

27/04/2016

Variance – difference between budgeted figure and actual figure.

Usually at end of budget period.

Can be favourable (F) or adverse (A).

Favourable variances – actual figure is better than budgeted figure.

Adverse variances – actual figures are worse than budgeted figures.

Managers examine variances to determine how improvements can be made.

Advertisements

From → 01 - Budgets

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: