Dear all, What if the expenses were less than the approved budget, can we consider it as a negative performance? Many thanks
Expenses against budget
Apr 03, 2008
1 Replies
"Omar" wrote
You really need to know why the expenses were under budget. Then you need to decide if that is a good thing or a bad thing.
Is it because sales were off, or because they got a good deal on the same quality of materials, or did they buy inferior materials and products, or was it because the budget setter set the budget too high in the first place.
The variances between budgeted amounts and actual results can only give you guidance on where to dig deeper into the whys of it all.
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