O'Reilly logo

Preparing a Budget by Harvard Business School Press

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

When Your Budget and Reality Differ

e9781422136584_i0019.jpg

BECAUSE ALL BUDGETS are based on assumptions about what might happen in the future, actual business results for the future time period stipulated in a particular budget may not reflect what was in the budget. Below are some insights into how you might respond to this situation.

What is variance?

The difference between the actual results produced by your department or unit and the budgeted results you’ve planned for is called the variance. Comparison of actual to budgeted results allows you to consider whether corrective action is needed. The variance can be favorable, when the actual results are better than ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required