What is a budget variance?

Question

Quizplus · Accepted Answer

A budget variance is the difference between what you planned to spend and what you actually spent. This could be a positive or negative difference, depending on whether you spent more or less than you budgeted for. Option A is incorrect because it describes what is known as a balanced budget. Option B describes variable expenses, but does not necessarily relate to budget variance. Option D is incorrect as it simplifies expenses into only two categories, fixed and variable, which may not capture all types of expenses that can affect a budget variance.

What Is a Budget Variance