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Benefits of calculating budget variance?
Budgeted variance analysis is very helpful in controlling the cost and expenditure of products and also helpful in determining the variation in the production expenditure with budgeted expenditure and help to eliminate variances in future and make better budgets.
What difference between a favorable variance and an unfavorable variance?
Favourable variance is that variance which is good for business while unfavourable variance is bad for business
What factors causes Budget Variance?
There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance
What is Assumptions for Variance Homogeneous?
Equal in Variance
What is a difference between a pooled variance and a combined variance?
Pooled variance is a method for estimating variance given several different samples taken in different circumstances where the mean may vary between samples but the true variance (equivalently, precision) is assumed to remain the same. A combined variance is a method for estimating variance from several samples, given the size, mean and standard deviation of each. Mathematically, a combined variance is equal to the calculated variance of the set of the data from all samples. See links.
A method to monitor variance between actual performance and budget is described?
Monitoring income statements is a way that people can monitor variance between actual performance and budget. Managers can be assigned to look over income statements for clients.
A company budgets 800 for maintenance How much money can it spend if an acceptable variance is 5 percent of the budgeted amount?
If a company budgets $800 for maintenance with an acceptable varience of 5%, then the company can spend up to $840. ($800+5%)
Benefits of calculating budget variance?
Budgeted variance analysis is very helpful in controlling the cost and expenditure of products and also helpful in determining the variation in the production expenditure with budgeted expenditure and help to eliminate variances in future and make better budgets.
The and the help Congress evaluate and monitor government programs and budgets?
haha i dont know i think its cbo, and gpo
Detail of 'how will i make a budget' in tally erp9?
To create a Budget in Tally.ERP 9Go to Gateway of Tally > Accounts Info > Budgets > Create1. In the Budget Creation screen enter a Name for your budget.2. Select from the List of Budgets for Under field. You can have a hierarchical setup for budgets. In the List of Budgets, Primary is at the top of the hierarchy and you can create more primary budgets. Sub-budgets can be created under Primary budgets.3. Enter the period of the budget in the From and To fields. The period entered can be a month, a year or any other period.4. In Set/Alter Budgets of, select• Groups - To create a budget for a Group of ledger accounts.• Ledgers - To create a budget for Ledgers.• Cost Centres - To create a budget for Cost Centres.5. Accept to save.To create a Budget in Tally.ERP 9Go to Gateway of Tally > Accounts Info > Budgets > Create1. In the Budget Creation screen enter a Name for your budget.2. Select from the List of Budgets for Under field. You can have a hierarchical setup for budgets. In the List of Budgets, Primary is at the top of the hierarchy and you can create more primary budgets. Sub-budgets can be created under Primary budgets.3. Enter the period of the budget in the From and To fields. The period entered can be a month, a year or any other period.4. In Set/Alter Budgets of, select• Groups - To create a budget for a Group of ledger accounts.• Ledgers - To create a budget for Ledgers.• Cost Centres - To create a budget for Cost Centres.5. Accept to save.You can modify a budget, using the alter option.Go to Gateway of Tally > Accounts Info > Budgets > Alter1. In the Budget Alteration screen, modify the fields as required. Change the period or change budgets of Groups, Ledgers and Cost Centres.Note: By default, Set/Alter Budgets is set to No. Set this option to Yes to alter.Deleting a BudgetTo delete a budget: Go to Gateway of Tally > Accounts Info > Budgets > Alter· Press Alt+D. Creating Budget for GroupsIn the Budget Creation/Alteration screen, set Yes in the Groups field, to set budgets for a group or group of ledgers.In the Group Budget screen, select a Group from the List of Groups and enter Account Name.Enter the cost centre for a group in Cost Centres field, select Not Applicable, if the budget is not for a particular cost center.In Type of Budget, select from the following two types.1. On Nett TransactionsSelect this option to monitor the transaction amounts and not the balances. Nett is net of debits and credits for the specified period. Nett transactions Budgets specified for a period automatically gets apportioned over the period. i.e., When On Nett transactions Budgets are defined, the debit amount for the specified period after reducing the credits for the same period is considered without taking into account opening and closing balances. For example to compare transactions against budgets, especially revenue income and expenses On Nett Transactions can be selected. 2. On Closing BalanceSelect this option to monitor the balances of the Accounts and the not the transactions. i.e., each month will have the same budget value except that the actual Opening Balance is also taken into account. Budgets on Closing balances can be set for Bank Account Ledgers, Debtors Ledger balances and so on. For example to compare closing balance figures in final statements, especially Balance Sheet items like assets and liabilities, select Closing Balances. Enter the budget amount in the Amount field.Note : Group Budgets do not get apportioned whereas Ledger Budgets get apportioned for each month.In the Budget Creation/Alteration screen, set Yes in the Ledgers field, to set budgets for ledgers. Creating Budget for Ledger AccountsIn the Ledger Budget screen, select a Ledger from the List of Ledgers and enter Account Name.Budgets can also be defined for Cost Centres pertaining to Ledger Accounts wherein you can repeat the same ledger with another Cost Centre.Enter the cost centre for the Ledger Account in the Cost Centre field. Select Not Applicable if the budget is not for a particular cost centre, but for the company.In Type of Budget, select from the following two types.1. On Nett TransactionsSelect this option to monitor the transaction amounts and not the balances. Nett is net of debits and credits for the specified period. Nett transactions Budgets specified for a period automatically gets apportioned over the period. i.e., When On Nett transactions Budgets are defined, the debit amount for the specified period after reducing the credits for the same period is considered without taking into account opening and closing balances. For example to compare transactions against budgets, especially revenue income and expenses On Nett Transactions can be selected. 2. On Closing BalanceSelect this option to monitor the balances of the Accounts and the not the transactions. i.e., each month will have the same budget value except that the actual Opening Balance is also taken into account. Budgets on Closing balances can be set for Bank Account Ledgers, Debtors Ledger balances and so on. For example to compare closing balance figures in final statements, especially Balance Sheet items like assets and liabilities, select Closing Balances. Enter the budget amount in the Amount field.Note : Ledger Budgets get apportioned for each month. Creating Budgets for Cost CentresThe purpose of a budget is to control expenditure. You can create multiple budgets in Tally.ERP 9, each for a specific purpose such as for the Bank, for the Head Office, Marketing budgets, Finance budgets, and so on.1. In the Cost Centres field in the Budget Creation/Alteration screen, set Yes to set budgets for cost centres.2. In the Cost Centre Budget screen, select a Cost Centre from the List of Cost Centres and enter Cost Centre.3. Enter a budget figure in Expenses for the cost centre.4. Enter a budget figure in Income for the cost centre.5. Enter Closing Balance.6. Accept to save. Viewing Budget VarianceBudget Variance report can be viewed from Trial Balance, Group Summary, monthly summary etc. The Budget Variance button (Alt+B) is active, if Budgets feature is enabled and at least one budget created. Budget Variance displays Budgets, Actuals with percentage and Variance from the budget with percentage.1. Budget Variance can be accessed from:o Gateway of Tally > Display > Trial Balance to display the Trial Balance screen.o Gateway of Tally > Display > Account Books > Group Summaryand select a group from List of Groups to display the Group Summary screen.2. Click on Budget Variance (Alt+B) from the toolbar to display the Budget Analysis screen.3. Select from the List of Budgets for Budgets/Scenario.4. Three columns display Budget, Actuals and Budget Variance, respectively.Note : Use Column functionality to add/ remove columns for Multi-period or Multi-budget Comparative Variance report.Corporate budget Column displays the values of the Budget, which is defined.Actuals Column displays the value of Actual Expenditure incurred.Corporate Budget Variance displays the values of the Variance of the Actuals and Budgets. i.e., Budgets - Actuals = Variance .Note: If the Budget Variance shows the negative value, then the actual expenditure value has exceeded the Budgeted values.
Why do costs need to be controlled and Why is it important to monitor budgets?
Costs need to be controlled because your costs cannot exceed your budget or you will have a negative balance; thus you would not be making any money. you also need to monitor your budgets as your budget always needs to be more than your costs or your business will go out of business.
What difference between a favorable variance and an unfavorable variance?
Favourable variance is that variance which is good for business while unfavourable variance is bad for business
What is the difference between negative price variance and volume variance?
Negative price variance is when the cost is less than budgeted. Volume variance is a variance in the volume produce.
What are the variances in a 4 variance analysis?
efficiency variance, spending variance, production volume variance, variable and fixed components
Can you describe the circuit diagram for a cardiac pacemaker?
very similar to the flash lamp in a disposable camera with a microprocessor to monitor variance from normal rhythm and push the button
What factors causes Budget Variance?
There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance
How are statistics budgets revenue budgets and operating budgets related?
ask your brain
