Variance budget analysis involves __________.
A) proactive budgeting
B) the difference between actual costs and amount budgeted
C) the difference between estimated costs and actual budget
D) none of these

Question

Quizplus · Accepted Answer

Variance budget analysis involves comparing the actual costs incurred with the amount budgeted. This helps in identifying any deviations from the budgeted amounts and taking corrective measures to control costs. Option A is not directly related to variance budget analysis. Option C is incorrect as it suggests the difference between estimated costs and the budget, which is not the case. Option D is a vague option and is incorrect.

Variance Budget Analysis Involves __________