Budget Variance
What is Budget Variance?
Budget variance is the difference between what was budgeted for and the actual result.
![bv 1](https://seeaccountingnow.online/wp-content/uploads/2021/08/bv-1.jpg)
How it Works
As part of the planning process, a business will lay out budget projections.
![bv 2](https://seeaccountingnow.online/wp-content/uploads/2021/08/bv-2.jpg)
After this, the business will produce actual results.
![bv 3](https://seeaccountingnow.online/wp-content/uploads/2021/08/bv-3.jpg)
Any difference between the budgeted amount and the actual amount is the budget variance.
![bv 4](https://seeaccountingnow.online/wp-content/uploads/2021/08/bv-4.jpg)
© R.J. Hickman 2020