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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.
