A budget variance is a periodic measure used by governments, corporations, or individuals to quantify the difference between budgeted and actual figures for a particular accounting category.
budget variance. the difference between the figure that the business budgeted for and the actual figure. It's calculated at the end of a budget period when the actual figure will be known.
Budget variance equals the difference between the budgeted amount of expense or revenue, and the actual cost. Favourable or positive budget variance occurs when: Actual revenue is higher than the budgeted revenue.
To calculate budget variances, simply subtract the actual amount spent from the budgeted amount for each line item.
variance. a measure of variability for the average squared distance that scores deviate from their mean.
The static-budget variance is the difference between the actual result and the corresponding budgeted amount in the static budget.
Budget variances are used to improve business operations. It allows you to dig into revenue to find out where you stand. It is also an accurate forecast for the year. It shows you how the company has performed.
A variance in accounting is the difference between a forecasted amount and the actual amount. Variances are common in budgeting, but you can have a variance in anything that you forecast. Basically, whenever you predict something, you're bound to have either a favorable or unfavorable variance.
In accounting, a variance is a difference between a budgeted, planned, or standard cost and the actual amounts on the financial statements. While there are multiple types of variances, the most common variances include prior year to current year balances or budgeted to actual amounts.
A budget deviation is a process whereby funds available for spending on a particular project are permitted to be spent in a manner that differs from the original budget as approved by the agency.
When conducting a budget variance analysis, you have two options: taking corrective action to reduce future variances (this is used in static budgets), or adjust the budgets as required to match actual costs (used with flexible budgets).
The variance for a population is calculated by: Finding the mean(the average). Subtracting the mean from each number in the data set and then squaring the result. The results are squared to make the negatives positive.