- Budget Variance
- A periodic measure used by governments, corporations or individuals to quantify the difference between budgeted and actual figures for a particular accounting category. A favorable budget variance refers to positive variances or gains; an unfavorable budget variance describes negative variance, meaning losses and shortfalls. Budget variances occur because forecasters are unable to predict the future with complete accuracy. As a result, some variance should be expected when budgets are created.
Budget variances can result from two sources - the things that can be controlled and things that cannot. A poorly planned budget, for example, is a controllable factor. Likewise, things like labor costs can be controlled by taking measures such as prohibiting overtime. Uncontrollable factors are often external and arise from occurrences outside of the company such as a natural disaster.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
budget variance — /ˌbʌdʒɪt veəriəns/ noun the difference between the cost as estimated for a budget and the actual cost … Marketing dictionary in english
budget variance — /ˌbʌdʒɪt veəriəns/ noun the difference between the cost as estimated for a budget and the actual cost … Dictionary of banking and finance
Отклонение бюджетное (BUDGET VARIANCE) — Отклонение фактических результатов от плановых по результатам сравнения, например, фактически полученных доходов или понесенных затрат с соответствующими статьями бюджета … Словарь терминов по управленческому учету
Отклонение гибкого бюджета (FLEXIBLE BUDGET VARIANCE) — Разность между фактическими значениями показателей и значениями согласно гибкого бюджета для фактического уровня деятельности … Словарь терминов по управленческому учету
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