Asked by
Ahmad Anees
on Oct 10, 2024
Verified
A spending variance is the difference between the amount of the cost in the static planning budget and the amount of the cost in the flexible budget.
Spending Variance
The difference between the actual amount of an expense and the budgeted or planned amount.
Static Planning Budget
A budget based on a fixed level of activity and not adjusted for actual activity levels.
Flexible Budget
A report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.
- Apprehend the significance of fixed and variable expenditures in developing budgets and analyzing financial performance.
- Recognize the difference between static planning budgets and flexible budgets.
Verified Answer
CG
Learning Objectives
- Apprehend the significance of fixed and variable expenditures in developing budgets and analyzing financial performance.
- Recognize the difference between static planning budgets and flexible budgets.
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