A budget performance report that includes variances can have variances caused by both price differences and quantity differences.

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Variances in a budget performance report can be caused by differences in price (price variances) and differences in quantity (quantity variances). For example, if the actual cost of a material is higher than the budgeted cost per unit (price variance), and more units of the material are used than planned (quantity variance), the total variance will be a combination of both types of variances.

A Budget Performance Report That Includes Variances Can Have Variances