What Is the Importance of Budget and Variances?
In management, budget is very important for a business and without budget business cannot achieve its goal. Now, it is always important for a student to understand the things in a proper way and if they do not understand the topics accurately, then they should ping us once as we from 24x7assignmenthelp.com are always availed for the needy student.
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What do you mean by Budget and Variances?
Budget and variances indicate that how pre-planned data is provided for a business related to its financial expenses that must be there according to its expenditure. Now, the term budget variance is related with the difference between the budget amount or its baseline amount and the actual amount which gets expensed in reality.
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What is the main motto of budget and variance?
With the proper indication of budget and variance it can easily be calculated that how much more or less expenses are there as per the budget estimate. Now, the main aim of the variance is to understand those reasons or bad assumptions those may affect a business budget again. Another important thing is to make the budgets controllable by controlling more and more expenses.
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What are the different cases of budget variances?
Some important variances are as follows-
- Some budget variances are completely controllable
- Sometimes some cases related to budget variance can be managed by “simple aggregation of line