The difference between actual results and budgeted results is referred to as
A)a variance.
B)management by exception.
C)a flexible budget.
D)a flexible outcome.

Question

Quizplus · Accepted Answer

A variance is the term used to describe the difference between actual results and budgeted results. This can be a positive or negative variance, depending on whether the actual results exceeded or fell short of the budgeted results. Management will need to analyze these variances and take appropriate actions to address any issues that are identified. Flexible budget and flexible outcome are not commonly used terms in accounting or finance, while management by exception refers to a management style where managers focus on areas that deviate significantly from expectations and only intervene when needed.

The Difference Between Actual Results and Budgeted Results Is Referred