A budget reconciliation is a report that uses variances to reconcile the difference between master budget profit and actual profit.

Question

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A budget reconciliation report compares actual financial results to the budgeted amounts and analyzes the variances to identify the reasons for the differences between the two. Its purpose is to identify areas where the company may be falling behind and make necessary adjustments to stay on track towards meeting its financial goals.

A Budget Reconciliation Is a Report That Uses Variances to Reconcile