Final answer:
The two factors that cause the total budget variance are revenue variance and expense variance.
Step-by-step explanation:
The two factors that cause the total budget variance are the revenue variance and the expense variance.
Revenue variance is the difference between the actual revenue collected and the budgeted revenue. It measures the deviations in revenue performance. For example, if the actual revenue collected is higher than the budgeted revenue, it creates a favorable revenue variance.
Expense variance, on the other hand, is the difference between the actual expenses incurred and the budgeted expenses. It measures the deviations in expense performance. For instance, if the actual expenses are lower than the budgeted expenses, it creates a favorable expense variance.