C15*(C3+C6)/2= Unit carrying cost
A company's carrying cost is the sum it pays keeping inventories on hand over time. It is the price of owning, retaining, and stocking the products. Renting the warehouse where the inventory is stored, running the warehouse, paying the wages of the people working there, any inventory loss from theft or damage, and insuring the inventory are all included in the carrying costs. Carrying cost typically range from 15% to 30% of the value of an organization's inventory. This number is crucial because it informs the business how long it can hold its inventory before it starts to lose money on unsalable items.
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Maxine views her company as a grouping of departments that must work together and as a single entity that has customers, suppliers, and competitors. Maxine is utilizing?.
Answer:
Option 4. Total quality management
Explanation:
In which steps of the customer service process is the sales department involved?
Create service request settlement
Authorize service
What is Authorize service?
An authorised phone company (ASP) is an individual or organization that has been granted the go-ahead to carry out services on either a product that is still protected by a warranty without voiding the warranty by another company.
Therefore,
In which steps of the customer service process is the sales department involved
Create service request settlement
Authorize service
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post each transaction to t-accounts and calculate the ending balance for each account. at the beginning of september, the company had the following account balances: cash, $36,600; accounts receivable, $750; supplies, $310; equipment, $5,500; accounts payable, $650; common stock, $15,500; retained earnings, $27,010. all other accounts had a beginning balance of zero.
The ending balance for each account will be $ 51200, $ 11250, $ 1910, $ 4100, $ 17000, $ 2250, $ 15500, $ 37510, $ 10500, $ 2300, $ 3500, and $ 1000 respectively.
What are common stocks?A type of corporate shareholding and a kind of security is common stock. Outside of the United States, the words voting share and ordinary share are widely used. In the UK and other Commonwealth nations, they are referred to as equity shares or ordinary shares. A security that symbolizes ownership in a firm is called common stock. After creditors, bondholders, and preferred stockholders have been paid, whatever assets are left over after a liquidation goes to common stockholders. In the market, various kinds of equities are traded.
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On+november+1,+alan+company+signed+a+120-day,+12%+note+payable,+with+a+face+value+of+$19,800.+what+is+the+adjusting+entry+for+the+accrued+interest+at+december+31+on+the+note?
The adjusting entry for the accrued interest at December 31 on the note is $198.
Amount of interest = 9900 x ((12% / 360) x 60) = $198
Interest Expense Debit $198
Interest payable Credit $198
Interest Expense pertains to the cost of borrowing cash. It's miles the fee that a lender charges a borrower for using the lender's money. On the income assertion, interest rate can represent the fee of borrowing cash from banks, bond investors, and other assets.
An Interest Expense is the cost incurred with the aid of an entity for borrowed finances. Interest Expense is a non-working price proven at the profits declaration. It represents interest payable on any borrowings bonds, loans, convertible debt or lines of credit score.
To finish, interest expense is the borrowing value or finance value the corporation incurs while it borrows money or rentals an asset. Interest payable is the quantity due at the give up of an accounting yr or working cycle. This quantity is a present day legal responsibility as cutting-edge liabilities are due inside a year.
Disclaimer:- The proper question is:-
Q.On November 1, alan company signed a 120-day, 12% note payable, with a face value of+$19,800. what is the adjusting entry for the accrued interest at December 31 on the note?
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if the percentage change in the quantity demanded of a good is greater than the percentage change in income, then this good will have an income elasticity: a less than 1 and it is a normal good. b equal to 1 and it is a normal good. c less than 1 and it is an inferior good. d equal to 0 and it is a normal good. e greater than 1 and it is a normal good.
The correct option is (e) greater than 1 and it is a normal good
If the percentage change in the quantity demanded of a good is greater than the percentage change in income and in the same direction, then this good will have an income elasticity greater than 1, and it is a normal good.
What Is Income Elasticity of Demand?The term "income elasticity of demand" describes how responsive a given good's quantity demand is to changes in the real income of the customers who purchase it.
The percent change in quantity demanded divided by the percent change in income is the formula for determining the income elasticity of demand. With the aid of income elasticity of demand, you may determine if a certain commodity is a luxury or a need.
• Income elasticity of demand is a term used in economics to describe how sensitively a change in income affects the quantity of a good or service that is wanted.
• The percentage change in the quantity required divided by the percentage change in income is the formula for determining the income elasticity of demand.
• Companies use the metric to help forecast how a business cycle would affect sales.
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Loyalty requires you to dismiss all of your personal goals permanently. please select the best answer from the choices provided t f
The given statement in this question is false. i.e. "Loyalty requires you to dismiss all of your personal goals permanently".
Employee loyalty to the organization is crucial but it doesn’t demand the employee to dismiss his/her personal goal permanently. But sometimes loyal employees who work for the success of the business sacrifice their time, health, and personal priorities to achieve the corporate goals.
Additionally, loyal workers have limitations. They don't forgo their well-being, hobbies, or time spent with loved ones in favor of the business. They use their sick leave and vacation time, which makes them better employees.
However, there are several crucial characteristics of loyal workers, many of which are obvious. They are punctual for work, finish what they start, and contribute to the business culture. Organizations should align the employee's personal goals with corporate goals to drive the loyalty of their employees.
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The assumption that in the absence of contrary information a business entity will continue indefinitely is the:__________
The assumption that in the absence of contrary information a business entity will continue indefinitely is the Going concern assumption.
The going situation principle, additionally called continuing problem idea or continuity assumption, method that a business entity will keep performing indefinitely, or at the least for some other twelve months. The idea of going difficulty assumes that a business company might maintain to perform its operations indefinitely for a reasonably long period of time and could not be liquidated inside the foreseeable destiny.
Going challenge is an accounting term for an organization that has the sources had to preserve running indefinitely till it presents evidence to the contrary. The reliability principle ambitions to make certain that all transactions, activities, and enterprise sports supplied in the monetary statements are reliable. records are considered reliable if they can be checked, validated, and reviewed with objective evidence. Going concern assumption assumes that an agency will preserve in operation lengthy sufficient to carry out its current targets and commitments.
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firm a operates 10 hours each day, producing 100 parts/hour. if productivity were increased 20%, how many hours would the plant have to work to produce 1000 parts?
company a operates 10 hours a day, producing 100 parts/hour. if productivity increases by 20%, it means the factory has to work to produce 1000 parts between 8 and 9 hours.
Manpower
Calculating the Amount of Manpower, Output and Working Time in Production – In production, we are often faced with several calculations to find out the amount of Manpower and Total Working Time to get the desired Output in order to achieve a predetermined Productivity. In Production, 100% Productivity is a reference percentage to perform Calculations. What we need to know is the Standard Time (ST) required to work on one unit of product. Standard Time (Standard Time or ST) is usually calculated and determined by product designers in accordance with established standards.
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indicate whether each of the following items is representative of managerial or of financial accounting: information is factual and is characterized by objectivity, reliability, consistency, and accuracy. information is reported continuously and has a current or future orientation. information is provided to outsiders, including investors, creditors, government agencies, analysts, and reporters. information is regulated by the sec, fasb, and other sources of gaap.
The items given above can be classified into the functions of managerial or financial accounting, as below,
Managerial, information is factual and is characterized by objectivity, reliability, consistency, and accuracy.Information is reported continuously and has a current or future orientation. Financial AccountingInformation is provided to outsiders, including investors, creditors, government agencies, analysts, and reporters. Information is regulated by the sec, FASB, and other sources of GAAP. What is the significance of an information?The information related to an organization is of different nature, and relates to different functions of an organization in the normal as well as extraordinary course of its functionality.
Therefore, the significance regarding an information has been aforementioned.
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A ________ takes data from the data manufacturers, cleans and processes the data, and then stores it.
A data warehouse takes data from the data manufacturers, cleans and processes the data, and then stores it.
What is a data warehouse?An enterprise data warehouse (EDW), also referred to as a data warehouse in computing, is a system for reporting and analysis of data and is regarded as a key element of business intelligence. Data warehouses (DWs) are the central repositories for combined data from one or more different sources. They maintain a single repository for both recent and old data, which is utilized to generate analytical reports for usage by employees across the entire company.
Data from operational systems are transferred and stored in the warehouse (such as marketing or sales). Before being used in the DW for reporting, the data may go via operational data storage and require data cleansing for extra activities to ensure data quality.
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the principle of increasing opportunity cost states that the more resources devoted to any activity, the the payoff to devoting additional resources to that activity.
The principle of increasing the marginal opportunity cost states that the more resources devoted to any activity, the smaller the payoff to devoting additional resources to that activity.
What is Marginal Opportunity Cost?
Marginal Opportunity Cost (MOC) of a given commodity is defined as the cost of sacrifice of a commodity so as to gain one additional unit of the other commodity. MOC can also be termed as Marginal Rate of Transformation. It is the ratio of number of units of a Good sacrificed to produce an additional unit of the other good.
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The principle of increasing marginal opportunity cost says that the more resources dedicated to any activity, the smaller the payoff to dedicating additional resources to that activity.
What is meant by marginal opportunity cost?A corporation will incur more costs in order to boost production, which is known as marginal opportunity cost(s). It comprises both direct and indirect expenditures as well as revenue lost from other opportunities that cannot be pursued if resources are allocated to producing more of one product.Marginal opportunity cost measures the opportunity cost associated with producing additional units of a good. The cost of business decisions that require giving up one thing for another is covered by this idea. For instance, a corporation might manufacture 10,000 pens in a single day's work.The principle of increasing marginal opportunity cost says that the more resources dedicated to any activity, the smaller the payoff to dedicating additional resources to that activity.
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which of the following facts would not necessarily be taken into consideration when trying to determine which of two residences is the principal residence of the taxpayer? multiple choice question. the proximity of each residence to the taxpayer's job the principal place of abode of the taxpayer's immediate family the taxpayer's mailing address for bills and important correspondence the proximity of each residence to the taxpayer's close friends
The correct option is (a). The proximity of each residence to the taxpayer's job the principal place of abode of the taxpayer's.
A taxpayer is anyone who owes taxes to the federal, state, or municipal governments, whether they are an individual or a corporation. Governments primarily obtain their funding through taxes, which are levied on both citizens and companies.
The term "taxpayer" in the context of taxation usually refers to "assessee," who is responsible for paying tax to the government either directly or indirectly depending on the type and amount of income generated the prior year. The Taxpayer must also pay tax to the government using certain channels or procedures.
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If the moran corp. has an roe of 19 percent and a payout ratio of 27 percent, what is its sustainable growth rate?
We need to calculate the retention ratio to calculate the sustainable growth rate. The retention ratio is:
b = 1 - .27
b = .73
Now we can use the sustainable growth rate equation to get:
Sustainable growth rate = (ROE × b) / [1 - (ROE × b)]
Sustainable growth rate = [.19(.73)] / [1 - .19(.73)]
Sustainable growth rate = 0.2169, or 21.69%
A sustainable growth rate (SGR) is the maximum growth rate a company or social enterprise can sustain without funding growth through additional equity or debt. In other words, it is a fee for growing the business while utilizing internal revenue without borrowing external funds.
What are the components of sustainable growth rate?
Sustainable growth rate is calculated by multiplying an organization's internal retention rate by its return on equity. The system for calculating sustainable growth rates is: Where: Deduction - [ (Net Income - Dividend) / Net Income) ].
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Rogressive insurance company sells insurance polices and related products. profressive insurance company is primarily what type of company?
Progressive insurance company is primarily a service company.
A service business enterprise offers a service to its clients, now not a product; by way of presenting services, a carrier business enterprise generates money. An accounting firm is an awesome instance of a carrier corporation. Accountants earn sales by means of doing books, auditing companies, and assets, and making ready profits tax returns.
Examples of pure service company include airlines, banks, pc carrier bureaus, law corporations, plumbing restore companies, motion picture theaters, and management consulting corporations.
A carrier-primarily based organization is the only one that gives customers, customers the closing method to their requirements or a carrier to every other agency. The carrier supplied through the organization is intangible and can be furnished in the form of talents, facilities, and know-how.
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A seller (or supplier) of goods or services to a business organization is known as a:_________
A seller (or provider) of goods or services to a business organization is known as a :Vendor
An organization that sells things is a vendor. It can market to both businesses and people, offering services, products, or a combination of the two.
What Is a Vendor?
A vendor is a participant in the supply chain who provides products and services to businesses or customers. The word "vendor" is often used to refer to the organization that receives payment for items given, not the company that made the goods itself. However, a vendor can act as both a maker and a supplier (or seller) of goods.Large retail chains like Target and Walmart typically have a list of suppliers from whom they can buy goods at discounted costs. They then provide the products to their clients at retail costs. To prepare for, acquire, and deliver the items and services they are contracted for, a vendor that serves one of these major businesses would require a significantly larger operation.A vendor, usually referred to as a supplier, is a person or a company who sells goods. A vendor often finds a place to sell their products and services. The seller markets and sells their goods using whichever strategy suits them best after procuring the appropriate items. If it is a food truck, for instance, the vendor makes sure there are adequate ingredients to prepare the menu items and serve an anticipated number of people before driving to a target area and starting to sell meals.To learn more about vendor visit:https://brainly.com/question/24852211
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drastically reduced competition that creates opportunities for rapid diversification and adaptive radiation can occur due to which of the following events?
Drastically reduced competition that creates opportunities for rapid diversification and adaptive radiation can occur due to mass extinctions.
What is mass extinction?A significant and sudden decrease in the variety of life on Earth is known as an extinction event (also known as a mass extinction or biotic crisis). During such an occurrence, the diversity and quantity of multicellular organisms quickly change, enabling us to recognize it. It occurs when the rates of speciation and extinction are out of balance. Estimates place the number of significant mass extinctions in the last 540 million years between five to twenty. Disagreements on the criteria for a "major" extinction event and the information utilized to determine historical biodiversity are the cause of these differences.
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all of the following are ways you can develop a personal brand: preparing a brief speech that describes who you are and what problems your skills can solve, creating an individual tagline that separates you from other candidates, and . group of answer choices showing how you are similar to other job candidates emailing all of your contacts a five-minute multimedia presentation that profiles your skills and experience creating an attractive résumé distributing business cards whenever you have an opportunity
all of the following are ways you can develop a personal brand: preparing a brief speech that describes who you are and what problems your skills can solve, creating an individual tagline that separates you from other candidates and creating an attractive résumé.
(d). creating an attractive résumé.
What is a personal brand?Personal branding is the deliberate and purposeful effort to shape how the public perceives an individual by boosting their reputation, presenting themselves as thought leaders in their field, and setting themselves apart from competitors. The goal is to help the individual progress professionally, expand their network of influence, and make a bigger impact.
Finding your individuality, developing a reputation around the qualities you want to be recognized for, and afterward allowing yourself to be recognized for them are all steps in the process of personal branding. The ultimate aim is to produce something that has a message and can be made money.
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a stock quote indicates a stock price of $94 and a dividend yield of 4%. the latest quarterly dividend received by stock investors must have been per share.
A stock quote indicates a stock price of $94 and a dividend yield of 4%. The latest quarterly dividend received by stock investors must have been $3.76 per share.
Quarterly dividend received per share = $94 * 4% = $3.76 per share.
What's dividend yield which means?
Dividend yield is the economic ratio that measures the quantum of cash dividends paid out to shareholders relative to the marketplace cost in line with share. It's miles computed with the aid of dividing the dividend consistent with share by way of the marketplace charge in line with proportion and multiplying the result by way of a 100.
Why Is Dividend Yield vital?
Some buyers, inclusive of retirees, are heavily reliant on dividends for his or her income. For those traders, the dividend yield of their portfolio could have a meaningful impact on their non-public budget, making it very critical for those buyers to select dividend-paying businesses with long tune records and clear economic strength. For other traders, dividend yield can be much less sizeable, including for younger investors who're more inquisitive about growth companies that can keep their income and use them to finance their increase.
What Does the Dividend Yield tell you?
The dividend yield is a economic ratio that tells you the percentage of a agency's percentage rate that it will pay out in dividends each 12 months. For instance, if a agency has a $20 proportion fee and pays a dividend of $1 in line with yr, its dividend yield could be 5%. If a agency's dividend yield has been step by step growing, this may be due to the fact they are increasing their dividend, because their percentage charge is declining, or both. Relying at the occasions, this will be seen as either a high-quality or a poor signal by means of traders.
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a primary beneficiary has died before the insured in a life insruance policy. a contingent beneficiary
Earnings go to beneficiaries will happen if a primary beneficiary has died before the insured in a life insurance policy.
What is primary beneficiary?The primary beneficiary lives under the uniform simultaneous death act if both the insured and the primary beneficiary die in circumstances where it is impossible to determine who died first, unless otherwise provided in the insurance contract.
Accidental death and disability insurance, as its name suggests, covers such occurrences. Insurance will also cover you even if a car accident results in the loss of limbs, sight, hearing, speech, etc.
Thus, Earnings go to beneficiaries.
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Answer:
they will pay the contingent beneficiary if go to the estate of the insured
Explanation:
In a competitive labor market, the demand for and supply of labor determine the equilibrium wage rate and the equilibrium level of employment. discuss the relationship between how these markets determine the wage rate and the quantity of labor that should be employed. share an example, beyond your textbook, that demonstrates this relationship
In a competitive labor market, the demand for and supply of labor determine the equilibrium wage rate and the equilibrium level of employment.
The relationship between how these markets determine the wage rate and the quantity of labor that should be employed is explained below.
All goods and services are made up of different resources known as factors of production.
Land, labor, capital, and entrepreneurship are the four primary components of production.
The labor market, like any other market, is governed by supply and demand laws.
The laws interact to determine the point at which the quantity required equals the quantity supplied.
The equilibrium consists of two components: equilibrium quantity and equilibrium price.
Distinct sorts of labor have different markets.
Some unskilled workers are paid less because of their skill level.
There are more subcategories at the higher ability levels.
Welders are one example of a skilled trade that is currently in high demand.
Welders are in short supply since there aren't enough of them. Companies require trained people, including welders, to manufacture their products, thus manufacturers compete for competent welders by giving greater compensation.Hence, the relationship between how these markets determine the wage rate and the quantity of labor that should be employed is as explained above.
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computech estimates it will need 100,000 chips a year if sales go as expected. but if sales are slow, fewer chips will be needed. this isn’t an issue with supplier 2; its price is the same at any quantity. however, supplier 1’s price per chip will be $1.95 if computech buys less than 90,000 during the year. if computech only needs 84,500 chips, which supplier would be more economical?
We need to make some changes to the spreadsheet in order to find the answer to this query, altering the "number of chips needed" to 84,500.
Then, Supplier 1's "cost per chip" will climb to $1.95, and the price of their order will be $1.95 x 84,500 = $164,775.
Given that the pricing remains the same, the order cost at Supplier 2 will be $1.87 x 84,500 ($158,015).
There will be 845 defective chips at Supplier 1 and 1690 at Supplier 2, and the cost to replace them will be $1690 and $3380, respectively.
There are $8,450 and $6,760 in total cost-connectors, respectively. 2% of $164,775 for Supplier 1 and 5.4% of $158,015 for Supplier 2 equal $3,295.5 and $8,532.81 in total inventory costs, respectively.
For Suppliers 1 and 2, the total shipping expenses are $0.02 x 84,500 ($1,690) and $0.03 x 84,500 ($2,535), respectively.
Following these modifications, Supplier 1's total cost is $179,900.5, whereas Supplier 2's total cost is $179,222.81.
Therefore, Supplier 2 is a superior option because its overall cost is now lower.
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given a sales price of $250 per unit, variable cost of $110 per unit, and a break-even point of 800 units, the estimated profit if 810 units are sold is $
The estimated profit if 810 units are sold is $1400.
By comparing an asset's market price to its initial cost, the breakeven point (break-even price) for a transaction or investment can be identified. The breakeven point is reached when the two prices are equal.
The breakeven point formula in corporate accounting is calculated by dividing the total fixed costs of production by the revenue per unit less the variable expenses per unit. In this context, fixed costs are those expenses that are constant regardless of the quantity of units sold. The production level at which total sales for a product equal total expenses is known as the breakeven point.
Gross Profit Margin / Fixed Costs = Business Breakeven
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A company wishing to set itself apart from its competition should strive to gain _______ by producing its goods and services more efficiently and effectively than other organizations.
A business should work to obtain a competitive edge by producing its goods and services more effectively and efficiently than other businesses if it wants to stand out from the competition.
What is competition?Competition is a struggle in which two or more parties compete for a single, unsharable goal, where one party gains at the expense of the other (an example of which is a zero-sum game). Entities such as organisms, people, economic and social organizations, etc., can compete with one another. The conflict may arise from the pursuit of any exclusive objective, such as recognition (such as prizes, products, relationships, status, or prestige), leadership, market share, specialized resources, or a specific region. Competition between living things that coexist in the same environment occurs in nature. Animals fight for access to food, mates, water, and other biological resources.
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Spraying for mosquito control in a local community is an example of a public good because it is?
Answer:
helpful
Explanation:
killing the mosquitoes prevents malaria. This keeps the people away from malaria
What will be his new monthly net pay? round your answer to the nearest dollar. $2821 $2857 $2860 $2891
$2891 is his new monthly net pay.
If chine reduces his federal income deductions from 12% to 11%, the new federal income tax will be as below.
11% of $3500
11/100 x 3500
=0.11 x 3500
=$385.
Total deductions after this change will be -$385+ $95 + $89 + $40
=$609
Net pay
=$3500-$609
=$2,891
What is Net salary?
The sum that is credited to an employee's salary account each month is known as the "Net Salary," also known as the "Take Home Salary" (or weekly, depending on the terms of the employment contract). This amount is given by the business where the employee works after the employer deducts things like professional taxes, EPF, etc.It is important to remember the net salary while calculating salaries. The amount an employee really receives in exchange for the services they deliver to the company is known as net salary. The money collected can be used to control costs such as rent, mortgage payments, travel expenses, etc.To know more about Net salary visit:
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Answer:
D
Explanation:
when an estimator is precise, it is guaranteed that it will produced estimates that are centered on the true population parameter. true false
It is a given that an accurate estimator will generate estimates that are centred around the real population parameter. The stated assertion is true
An estimator is a number that is assigned to each potential random sample of size n from the population (the estimate of the parameter). For instance, the sample mean assigns the average of the n values in the sample to each sample of size n. The estimate is the value that is given to each specific random sample by the estimator, a rule that allocates values to samples. A statistic, or a figure calculated from a sample, is a specific case of an estimator.
Since the estimator's value depends on the sample, it is a random variable, and as a result, the estimate frequently differs from the population parameter's value. We must comprehend how the estimator's value changes.
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Reference the max process: for burgers, the customer entering at which time has the longest wait time? group of answer choices 9pm 7pm 6pm all customers have the same wait time 8pm
The customer entering at 8pk has the longest wait time.
How to illustrate the informationIt should be noted that for burgers, throughput rate
From 6-7 = 48 / hourFrom 7-8 = 48 / hourFom 8-9 = 48 / hour.The inventory will increase by 12 each hour from six to eight ( 60 incoming orders against capacity of 48). After the first two hours, the stock will continue to increase until it reaches 24 hamburgers at eight o'clock. 48 orders will be handled between 8 and 9 AM, with 16 still outstanding by 9 PM ( because the order rate will now fall from 60 to 40)
The payment procedure won't be impacted because the total putut from packaging will be 48 + 40 = 88 during the first two hours and 48 + 30 = 78 during the final hour.
Since there will be 24 people in front of consumers arriving at 8 PM, they will have to wait the longest.
Therefore, the correct option is 8pm.
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Washing machines that are manufactured in the united states and sold in germany are categorized as u.s. ________.
Answer:
Exports
Explanation:
PLATO gang
When it comes to international trade, an export is a good made in one nation and sold in another, or a service rendered in one nation to a national or resident of another nation.
What is Export ?The person who provides these goods or services is an exporter; the overseas customer is an importer. Financial, accounting, and other professional services, tourism, education, and intellectual property rights are all examples of services that are involved in international trade.
Customs officials frequently need to be involved while exporting goods.
A corporation may benefit from location economies and experience curve effects in their own nation by exporting.
Ownership benefits include the company's resources, global expertise, and capacity to create either affordable or distinctive items.
The benefits of a market's geographic location include: cost, market opportunity, and investment risk combined. The benefits of keeping a core competency in-house and utilizing it throughout the value chain as opposed to licensing, outsourcing, or selling it are known as internationalization advantages.
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a direct relationship between price and quantity is represented by: a equilibrium. b the supply curve. c the production possibility frontier. d the utility curve. e the demand curve.
A direct relationship between price and quantity is represented by the supply curve.
What do you understand by supply curve?The supply curve in economics is a visual representation of the relationship between the cost of an item and the quantity that a seller is willing and able to produce. The vertical axis of the graph reflects product pricing, while the horizontal axis represents supply quantity.
The law of supply can be understood better with the help of supply curves. They illustrate graphically how producers will raise their output as prices for a good or service rise.
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From the perspective of managing a budget, what term is used to describe the difference between the amount of money that was budgeted and the actual amount of money spent?.
Budget variance is a term used to describe the discrepancy between the amount of money allocated and the actual amount spent when managing a budget.
A budget variance is a recurring metric used by organisations, businesses, or individuals to express the discrepancy between budgeted and actual numbers for a certain accounting category. Positive variations or gains are referred to as favourable budget variances, whereas negative deviations, which represent losses or shortages, are referred to as unfavourable budget variances. Forecasters' imperfect ability to predict future expenditures and revenues leads to budget variations.
The sum of money spent to purchase a good or asset is referred to as the actual amount in accounting. This could be the price of the product in the past, present, or future. This is not what the management has budgeted or expected because such prices could also include vendor costs for delivery, setup, and testing.
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