Variances in Budgets: Definition, Calculations & Analysis


Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What are variances in budgets?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. Why do we calculate variances between actual activity and the budget?

2. How do we calculate variances to budget?

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

Your ability to understand variance and its role in budgeting is assessed in this quiz/worksheet combination. You will be asked about variance calculation, to define price volume analysis, and explain how to calculate prince and volume differences.

Quiz & Worksheet Goals

This assessment will test your ability to:

  • Define variance in budges
  • Explain the usefulness of variances
  • Explain how to calculate variance
  • Define price volume analysis
  • Explain the usefulness of calculate price and volume differences

Skills Practiced

This assessment will test the following skills:

  • Critical thinking - apply relevant concepts to examine information about budgets in a different light
  • Problem solving - use acquired knowledge to solve variance calculation practice problems
  • Interpreting information - verify that you can read information regarding price volume analysis and interpret it correctly
  • Defining key concepts - ensure that you can accurately define variance, budget, and actual

Additional Learning

In business a budget helps a company plan. Review this lesson on calculating variances to understand how this number can help companies revise their plan as needed. This lesson covers:

  • Defining variances in budgets
  • Calculating variances
  • Analyzing variances