1. Finance
  2. Budget & Expense Management

Budget Variance


The difference between the budgeted amount for any category and the actual amount spent. Allows companies to track their financial performance and make necessary adjustments if they're overspending or underspending.


Budgeted Amount - Actual Amount Spent


If the budget for marketing was $1 million and the actual spent was $800,000, the budget variance would be $200,000.