The document describes a budget variance report, which compares budgeted and actual results for various financial items. A budget variance report includes the item, budgeted amount, actual amount, variance (difference between budget and actual), and whether the variance is favorable or unfavorable. Variances are favorable when the actual result is better than budgeted and unfavorable when actual is worse. The document provides an example budget variance report for items in a cash flow statement.

1. 21.11
BUDGET VARIANCE
REPORT

2. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 The purpose of preparing a budget is so that budgeted results
can be compared to actual results
 A Budget Variance Report is an accounting report that is
prepared to compare the differences between budget estimates
and actual results
21.11 BUDGET VARIANCE REPORT
Actual
results
Budgeted
results
Variance- =

3. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Item
Any item from the firm’s
financial reports
Budgeted
The expected
result
Actual
The actual
result
Variance
Budget less
actual result
Result
Either
favourable or
unfavourable
 Format of a Budget Variance Report…
Item Budget Actual Variance Favourable /
Unfavourable
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Always expressed as a positive
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Collections from debtors
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Collections from debtors 11,000
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Collections from debtors 11,000 8,000
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Collections from debtors 11,000 8,000 3,000
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Collections from debtors 11,000 8,000 3,000 Unfavourable
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Collections from debtors 11,000 8,000 3,000 Unfavourable
Wages expense
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Collections from debtors 11,000 8,000 3,000 Unfavourable
Wages expense 1,500
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Collections from debtors 11,000 8,000 3,000 Unfavourable
Wages expense 1,500 2,500
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Collections from debtors 11,000 8,000 3,000 Unfavourable
Wages expense 1,500 2,500 1,000
Item Budget Actual Variance Favourable /
Unfavourable
Cash sales 9,000 10,000 1,000 Favourable
Collections from debtors 11,000 8,000 3,000 Unfavourable
Wages expense 1,500 2,500 1,000 Unfavourable
Actual
results
Budgeted
results
Variance- =
21.11 BUDGET VARIANCE REPORT

4. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 Determining if a result is favourable or unfavourable…
Favourable
Variance = Where the Actual result is better than the
Budgeted result
Unfavourable
Variance = Where the Actual result is worse than the
Budgeted result
Not MORE
than
Actual
results
Budgeted
results
Variance- =
21.11 BUDGET VARIANCE REPORT

5. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Cash inflows Revenues Profits
Budgeted Actual Unfavourable
> =
Actual Budgeted Favourable> =
Item Budget Actual Variance Favourable /
Unfavourable
Collections from debtors 15,000 18,000 3,000
Item Budget Actual Variance Favourable /
Unfavourable
Collections from debtors 15,000 18,000 3,000 Favourable
Item Budget Actual Variance Favourable /
Unfavourable
Collections from debtors 15,000 18,000 3,000 Favourable
Credit sales 25,000 21,000 4,000
Item Budget Actual Variance Favourable /
Unfavourable
Collections from debtors 15,000 18,000 3,000 Favourable
Credit sales 25,000 21,000 4,000 Unfavourable
Item Budget Actual Variance Favourable /
Unfavourable
Collections from debtors 15,000 18,000 3,000 Favourable
Credit sales 25,000 21,000 4,000 Unfavourable
Net profit 7,000 8,000 1,000
Item Budget Actual Variance Favourable /
Unfavourable
Collections from debtors 15,000 18,000 3,000 Favourable
Credit sales 25,000 21,000 4,000 Unfavourable
Net profit 7,000 8,000 1,000 Favourable
21.11 BUDGET VARIANCE REPORT

6. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Cash outflows Expenses
Budgeted Actual Favourable
> =
Actual Budgeted Unfavourable> =
Item Budget Actual Variance Favourable /
Unfavourable
Payments to creditors 8,000 10,000 2,000
Item Budget Actual Variance Favourable /
Unfavourable
Payments to creditors 8,000 10,000 2,000 Unfavourable
Item Budget Actual Variance Favourable /
Unfavourable
Payments to creditors 8,000 10,000 2,000 Unfavourable
Insurance 2,400 1,800 600
Item Budget Actual Variance Favourable /
Unfavourable
Payments to creditors 8,000 10,000 2,000 Unfavourable
Insurance 2,400 1,800 600 Favourable
Item Budget Actual Variance Favourable /
Unfavourable
Payments to creditors 8,000 10,000 2,000 Unfavourable
Insurance 2,400 1,800 600 Favourable
Wages 25,000 22,000 3,000
Item Budget Actual Variance Favourable /
Unfavourable
Payments to creditors 8,000 10,000 2,000 Unfavourable
Insurance 2,400 1,800 600 Favourable
Wages 25,000 22,000 3,000 Favourable
21.11 BUDGET VARIANCE REPORT

7. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 The Variance can also be expressed as a percentage:
% Variance Variance
Budgeted
result= /
Item Budget Actual Variance
$
Variance
%
Favourable /
Unfavourable
Collections from debtors 15,000 18,000 3,000 Favourable
Payments to creditors 8,000 10,000 2,000 Unfavourable
Item Budget Actual Variance
$
Variance
%
Favourable /
Unfavourable
Collections from debtors 15,000 18,000 3,000 20.0% Favourable
Payments to creditors 8,000 10,000 2,000 Unfavourable
Item Budget Actual Variance
$
Variance
%
Favourable /
Unfavourable
Collections from debtors 15,000 18,000 3,000 20.0% Favourable
Payments to creditors 8,000 10,000 2,000 25.0% Unfavourable
Actual
results
Budgeted
results
Variance- =
21.11 BUDGET VARIANCE REPORT

8. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 A Budget Variance Report can be prepared for:
Cash Flow Statement
Income Statement
Actual
results
Budgeted
results
Variance- =
21.11 BUDGET VARIANCE REPORT

9. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000
GST collected 1,200 1,400 100
Payments to creditors (6,000) (5,000) 1,000
Electricity (1,000) (1,000) 0
GST paid (300) (420) 120
Net Cash Flow from Operating
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100
Payments to creditors (6,000) (5,000) 1,000
Electricity (1,000) (1,000) 0
GST paid (300) (420) 120
Net Cash Flow from Operating
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000
Electricity (1,000) (1,000) 0
GST paid (300) (420) 120
Net Cash Flow from Operating
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0
GST paid (300) (420) 120
Net Cash Flow from Operating
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120
Net Cash Flow from Operating
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000)
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400)
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing (1,000)
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing (1,000) 1,200
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing (1,000) 1,200 800
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing (1,000) 1,200 800 Favourable
Net increase (decrease) in cash
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing (1,000) 1,200 800 Favourable
Net increase (decrease) in cash (100)
Cast at start
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing (1,000) 1,200 800 Favourable
Net increase (decrease) in cash (100)
Cast at start 3,000
Cash at end
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing (1,000) 1,200 800 Favourable
Net increase (decrease) in cash (100)
Cast at start 3,000
Cash at end (2,900)
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing (1,000) 1,200 800 Favourable
Net increase (decrease) in cash (100) 2,980
Cast at start 3,000
Cash at end (2,900)
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing (1,000) 1,200 800 Favourable
Net increase (decrease) in cash (100) 2,980
Cast at start 3,000 3,000
Cash at end (2,900)
Cash Flow Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Operating Activities
Cash sales 12,000 14,000 1,000 Favourable
GST collected 1,200 1,400 100 Favourable
Payments to creditors (6,000) (5,000) 1,000 Favourable
Electricity (1,000) (1,000) 0 --
GST paid (300) (420) 120 Unfavourable
Net Cash Flow from Operating 5,900 8,180 2,280 Favourable
Investing Activities
Purchase of vehicle (5,000) (6,400) 1,400 Unfavourable
Net Cash Flow from Investing (5,000) (6,400) 1,400 Unfavourable
Financing Activities
Loan 0 2,000 2,000 Favourable
Drawings (1,000) (800) 200 Favourable
Net Cash Flow from Financing (1,000) 1,200 800 Favourable
Net increase (decrease) in cash (100) 2,980
Cast at start 3,000 3,000
Cash at end (2,900) 5,980
21.11 BUDGET VARIANCE REPORT

10. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600
Credit sales 7,000 6,000 1,000
Total Sales
less Cost of Goods Sold
Cost of sales 4,000 4,500 500
Gross Profit
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600
Credit sales 7,000 6,000 1,000
Total Sales
less Cost of Goods Sold
Cost of sales 4,000 4,500 500
Gross Profit
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales
less Cost of Goods Sold
Cost of sales 4,000 4,500 500
Gross Profit
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000
less Cost of Goods Sold
Cost of sales 4,000 4,500 500
Gross Profit
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600
less Cost of Goods Sold
Cost of sales 4,000 4,500 500
Gross Profit
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400
less Cost of Goods Sold
Cost of sales 4,000 4,500 500
Gross Profit
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500
Gross Profit
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0 --
Insurance 200 250 50
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0 --
Insurance 200 250 50 Unfavourable
Bad debts 800 500 300
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0 --
Insurance 200 250 50 Unfavourable
Bad debts 800 500 300 Favourable
Total Other Expenses
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0 --
Insurance 200 250 50 Unfavourable
Bad debts 800 500 300 Favourable
Total Other Expenses 4,000
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0 --
Insurance 200 250 50 Unfavourable
Bad debts 800 500 300 Favourable
Total Other Expenses 4,000 3,550
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0 --
Insurance 200 250 50 Unfavourable
Bad debts 800 500 300 Favourable
Total Other Expenses 4,000 3,550 450
Net Profit
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0 --
Insurance 200 250 50 Unfavourable
Bad debts 800 500 300 Favourable
Total Other Expenses 4,000 3,550 450 Favourable
Net Profit 1,800
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0 --
Insurance 200 250 50 Unfavourable
Bad debts 800 500 300 Favourable
Total Other Expenses 4,000 3,550 450 Favourable
Net Profit 1,800 1,450
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0 --
Insurance 200 250 50 Unfavourable
Bad debts 800 500 300 Favourable
Total Other Expenses 4,000 3,550 450 Favourable
Net Profit 1,800 1,450 350
Income Statement Budget Variance Report
Item Budget Actual Variance Fav /Unfav
Revenue
Cash sales 3,000 3,600 600 Favourable
Credit sales 7,000 6,000 1,000 Unfavourable
Total Sales 10,000 9,600 400 Unfavourable
less Cost of Goods Sold
Cost of sales 4,000 4,500 500 Unfavourable
Gross Profit 6,000 5,100 900 Unfavourable
less Stock loss 200 100 100 Favourable
Adjusted Gross Profit 5,800 5,000 800 Unfavourable
less Other Expenses
Wages 1,000 800 200 Favourable
Rent 2,000 2,000 0 --
Insurance 200 250 50 Unfavourable
Bad debts 800 500 300 Favourable
Total Other Expenses 4,000 3,550 450 Favourable
Net Profit 1,800 1,450 350 Unfavourable
21.11 BUDGET VARIANCE REPORT

11. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 Once a Budget Variance Report has been done, the process doesn’t end
there…
Period 1 Period 2 Period 3
Perform a Budget
Variance Report
Identify any
problems
Take corrective
action
Develop a new
budget
21.11 BUDGET VARIANCE REPORT
Perform a Budget
Variance Report
Identify any
problems
Take corrective
action
Develop a new
budget
Etc…

12. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 Why shouldn’t a Budget Variance Report just be done once per year or
every 6 months?
 What if a significant problem has been occurring since early in the year?
E.g. high bad debts
 If this is not identified early then the issue will cause problems
throughout the year and corrective action will be too late
1 Jan 31 Dec
Budget Variance
Report done here
Bad debts became
an issue here…
Bad debts problems continue all year
Corrective action
finally taken here
21.11 BUDGET VARIANCE REPORT

13. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 If budgeting occurs more frequently then this gives management
greater control
 Significant variances can be fixed before they cause too much damage
1 Jan 31 Dec
Budget Variance
Report done here
Bad debts became
an issue here…
Corrective action
finally taken here
31 Mar 30 Jun 30 Sep
Check if the action
solved the problem
with a Budget
Variance Report
21.11 BUDGET VARIANCE REPORT

14. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 How can a budget be used to manage, control and improve the
business?
Step 1 – Compare actual and budgeted results
Step 2 – Identify any significant variances
Step 3 – Take corrective action to improve performance
Step 4 – Prepare a new budget
The Budgeting Process
21.11 BUDGET VARIANCE REPORT

15. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
 What is a significant variance?
 Significant variances:
 Variances which affected the firm’s results and decision-making
(Relevance)
 Must be investigated:
 Was it a poor performance or was the budget figure incorrect?
 Insignificant variances:
 Variances which are small and insignificant and don’t affect decision-
making
 Do not need to be investigated.
21.11 BUDGET VARIANCE REPORT

16. © Michael Allison, Trinity Grammar School.
Author’s permission required for external use
TASK
In-class Homework
SQ14 X
SQ15 X
SQ16 X
SQ17 X
SQ18 X
Ex21.14 X
Ex21.15 X
Ex21.16 X
Ex21.17 not (c) or (d) X
Case study X