The focus of most variance reports is to highlight the differences between
A) budgeted expenditure and actual expenditure.
B) budgeted expenditure and flexible expenditure.
C) budgeted revenue and actual revenue.
D) budgeted revenue and flexible revenue.

Question

Quizplus · Accepted Answer

Variance reports are used to compare the budgeted expenditure with the actual expenditure. This helps identify areas where the actual expenditure may be higher or lower than planned, and allows for necessary adjustments to be made in future budgets. While flexible expenditure may also be analyzed in a variance report, the main focus is on the budgeted vs actual expenditure. Budgeted and actual revenue may also be compared, but this is less common in variance reports as the focus is usually on expenses rather than income.

The Focus of Most Variance Reports Is to Highlight the Differences