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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:
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Rand |
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|
Month of June |
Year to end June |
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|
|
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 |