Organizations measure the effectiveness of their budgets by examining actual revenues and expenditures versus:
A) planned variances.
B) incremental budgets.
C) productivity metrics.
D) expected performance.

Question

Quizplus · Accepted Answer

Variance analysis is the process by which deviations from budgeted amounts are examined by comparing actual performance results against expected, or budgeted, performance.

Organizations Measure the Effectiveness of Their Budgets by Examining Actual