The total budget variances are categorized into price variances and usage variances.

Name: The total budget variances are categorized into price variances and usage variances.
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Price variances occur when the actual price paid for a material or service differs from the budgeted price, while usage variances occur when the actual quantity of materials or services used differs from the budgeted quantity. Together, these two types of variances make up the total budget variance.

The Total Budget Variances Are Categorized into Price Variances and Usage