Budget Variance

Budget variances can be calculated by governments, corporations, individuals...pretty much anyone who operates (or tries to operate) on a budget.

The variance is the difference between the budgeted (or predicted) expense or revenue (income)...and the actual one.

So if you budgeted $50 for your phone bill, but then downloaded a bunch of apps and brought your bill up to $70, the variance would be the $20 over what your anticipated amount was.

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Finance: What is a Budget?43 Views

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Finance a la shmoop what is a budget? that's that thing you throw right out [Woman throws budget out the window]

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the window just before you start doing all your Christmas shopping

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right but generally it's a plan that lets you see where your money will be

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spent if you have a personal budget well you'll be able to decide ahead of time [Personal budget example]

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how much money you'll spend on clothes, food, megaphones to annoy and anger your

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neighbors and you know whatever floats your boat if you own a company well

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you'll probably have much more complicated budget for things like

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advertising and lawyer fees either way the plan helps you make sure that you

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have enough moolah for everything you need and maybe some leftover for stuff

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you want.....Joan wants to control her money so she decides to set up a budget for [Joan setting up a budget on a laptop]

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next month she makes a thousand bucks from her summer job and well here's what

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her budget looks like.....

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Now Joan knows exactly where every penny is gonna go she's not [Joan driving a car]

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gonna be caught off guard by any surprise expenses she's not gonna spend

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$200 on safecracking equipment and then realize she doesn't have enough left [Joan stood beside a vault of gold bars]

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to pay her phone bill although if she does get hit with some unexpected

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expenses well hopefully yeah she can just pawn some of those exotic vases she

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took from the Peterson place [Joan holding a vase]

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