Spending Variance

From LinkedAUB Collab
Jump to navigation Jump to search

Description

The difference between how much a cost should have been, given the actual level of activity, and the actual amount of the cost. A favorable (unfavorable) spending variance occurs because the cost is lower (higher) than expected, given the actual level of activity for the period.

Concept Prerequisite

Wikipedia Reference

Learning Material

Covered in Topic(s)

 
Flexible Budgets and Overhead Analysis