A report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.
Flexible budget
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15
The difference between the actual revenue for the period and how much the revenue should have been, given the actual level of activity.
Revenue variance
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15
The difference between a revenue or cost item in the flexible budget and the same item in the static planning budget.
Activity variance
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eraser
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gift
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fairy
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thief
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15
The difference between the actual amount of the cost and how much the cost should have been, given the actual level of activity.
Spending variance
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15
A budget created at the beginning of the budgeting period that is valid only for the planned level of activity.
Planning budget
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trap
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magnet
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fairy
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banana
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15
A management system in which actual results are compared to a budget. Significant deviations from the budget are flagged as exceptions and investigated further.