When creating a budget, how much should you factor variances
into such an analysis?
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Finance
When creating a budget, how much should you factor variancesinto such an analysis?
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Variance analysis is a process of identifying causes of variation in the income expenses of the current year from the budgeted values It helps the organization to understand the reasons for fluctuations and what should be done to reduce the adverse effect on the budget This helps to create a more efficient budget Variance Actual IncomeExpense Budgeted IncomeExpense Application of variance analysis Most of the organizations follow the below steps while preparing business plans and meeting their
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