Budgeting (or management accounting in general), is a tool of budgetary control by evaluation of performance by means of variances between budgeted amount, planned amount or standard amount and the actual amount incurred/sold.
The flexible budget variance is the difference between any line-item in the flexible budget and the corresponding line-item from the statement of actual results. The following steps are used to prepare a flexible budget: 1. Determine the budgeted variable cost per unit of output.  Efficiency variance. The difference between the budgeted amount of inputs required to produce a unit of output and the actual amount of inputs used. In manufacturing, it can be used to analyze the effectiveness with respect to labor, materials, machine time and other production factors. Rate Variance. Difference between the cost of specific number of budgeted units and the actual cost that was incurred. (Actual units x actual costs) - (actual units x standard costs). In its simplest form a budget is a plan or forecast in the form of a list, showing spending items and/or incoming revenue items, with a figure for each item. As time passes, actual spending or revenue may be entered into the list to compare with the originally budgeted figure. Here, a positive variance means that spending is over budget and a negative variance means that spending is under budget. However, note that this convention is not universally observed: some people prefer to show overspending as a negative figure by calculating variance as the planned figure less the actual figure. Variance Report. The purpose of a  Variance Report  as shown below is to identify differences between the planned financial outcomes (the Budget) and the actual financial outcomes (The Actual). The difference between Budget and Actual is called the ' Variance . The Variance is depicted below in dollar ($) and percent (%) terms. Calculating the variance in percent (%) is useful as it gives the relative size of the variance. (December 2009). In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold. The concept of variance is intrinsically connected with planned and actual results and effects of the difference between those two on the performance of the entity or company. Favorable Variance. A difference between actual cost and budgeted (standard) cost, and the actual cost is the lesser amount. In revenues, it occurs when the actual revenues are greated than budgeted revenues (a variance is favorable when the bottom line net income is increased by variance). Rate Variance. Difference between the cost of specific number of budgeted units and the actual cost that was incurred. (Actual units x actual costs) - (actual units x standard costs). $2,400 favorable. $10,800 favorable. 8. The difference between the actual amount of overhead and the amount of overhead that would be included in a flexible budget is called the (Points: 2) avoidable overhead variance. actual overhead variance. controllable overhead variance. . required overhead variance. 9.  A budget variance is the difference between the budgeted or baseline amount of expense or revenue, and the actual amount. The budget variance is favorable when the actual revenue is higher than the budget or when the actual expense is less than the budget. In rare cases, the budget variance can also refer to the difference between actual and budgeted assets and liabilities. Variance analysis, in budgeting (or management accounting in general), is a tool of budgetary control by evaluation of performance by means of variances between budgeted amount, planned amount or standard amount and the actual amount incurred/sold. Variance analysis can be carried out for both costs and revenues. The concept of variance is intrinsically connected with planned and actual results and effects of the difference between those two on the performance of the entity or company.
http://classes.bus.oregonstate.edu/spring-07/ba422/Management%20Accounting%20Chapter%205.htm https://quizlet.com/11132252/cost-accounting-ch-7-flash-cards/ https://www.business-case-analysis.com/budget.html http://www.leoisaac.com/budget/bud025.htm https://en.wikipedia.org/wiki/Variance_(accounting) https://quizlet.com/11132252/cost-accounting-ch-7-flash-cards/ http://ww2.justanswer.com/uploads/BusinessTutor/2010-11-11_055301_jason.doc http://www.accountingtools.com/questions-and-answers/what-is-a-budget-variance.html https://en.wikipedia.org/wiki/Variance_(accounting)
what is difference between planned amounts and budgeted amounts