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IENG 216. Variances. Budget Variances. Positive (favorable) Variances Negative (unfavorable) Variances. Deterministic Expenses Discretionary Expenses. Materiality of the Variance. Date: 12-07-98. Timeliness. Example. a. Develop a variance report by expense

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ieng 216

IENG 216

Variances

slide3

Positive (favorable) Variances

Negative (unfavorable) Variances

slide4

Deterministic Expenses

Discretionary Expenses

slide6

Date: 12-07-98

Timeliness

example
Example

a. Develop a variance report by expense

b. Which expenses are important (Mngmt by exception)?

c. Which variances are significant (materiality)?