Question

When budgets are used for evaluation, what is the difference between budgeted and actual amounts called?

a. Exceptions
b. Budget variances
c. Performance results
d. Flexible budgets

Answer 1

b. Budget variances

Step-by-step explanation:

The difference between budgeted and actual amount is called as budget variance. Budget variance is useful when we are evaluating the performance of a company, this is done be deducting the budgeted amount from actual amount to see if the performance of a company is favorable or unfavorable