Variances between actual and budgeted amounts inform management about performance relative to the budget.

Question

Quizplus · Accepted Answer

Variances between actual and budgeted amounts are used to evaluate performance and provide insights into areas where the actual results differ from the expectations set by the budget. This information is crucial for management to identify areas where improvements can be made and decisions can be taken to improve the overall performance of the organization.

Variances Between Actual and Budgeted Amounts Inform Management About Performance