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Management of a Budget

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Managing a budget requires comparing actual figures with budgeted figures (what actually happened compared to what you expected to happen). The difference between the two is called the variance. A budget should also include commentary on the variance.

An example of the management of a monthly budget for a business unit is shown below:

Rand

 

Month of June

Year to end June

 

Actual

Budget

Variance

Actual

Budget

Variance

Salaries

12000

10000

 2000

72000

60000

12000

Stationery

  2000

  2000

       0

12000

12000

        0

Telephone

    950

    500

   450

  5700

  3000

  2700

Travel

  2500

 1200

 1300

15000

  7200

  7800

Total Spending

17450

13700

 3750

104700

82200

22500