Management Accounting
Management Accounting Checklist
Budgeting
Budgetary control falls within the performance management and control aspects of management accounting. A budget is a financial evaluation of a plan against which actual expenditure can be compared and monitored. A typical budget report will show actual costs against budgeted costs and provide an explanation for any variance.
Variance analysis is a technique used in management accounting to analyse variances against budget.
Example:
Note: Although the current total variance is 0 it will be (2) adverse once the planned travel is undertaken. This variance is due to an additional staff member (additional outlay) and a pay increase above that budgeted (rate).
Future Practice Owner.
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