Variance (Expense)

The Variance between Actual and Budgeted Expenses calculator computes the difference (variance) in the amount of budgeted expenses and the actual expenses. 

INSTRUCTIONS: Choose your preferred currency units and enter the following:

• (ae) This is the actual expense.
• (be) This is the budgeted expense.

Expense Variance: The calculator returns the difference in expense (variance) in U.S. dollars.  However this can be automatically converted to other currency units via the pull-down menu.

General Information

 In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold. Variances can be computed for both costs and revenues.

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.