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Frequently Asked Question

1. What are Budget Actual Comparison Report and when to use?
This report is most commonly used to compare the budget values with the commitments and actual amounts posted.
Report Functionality

  • Offer a comparison of the current budget amounts with commitments and actual amounts posted
  • For every type of financial transaction, the report shows the actual values through commitment item.
  • The particulars for each balance can be seen through drilling down on the actual amount.

2. Why Compare Actual Vs. Budget?
Comparing actual vs. budget is often referred to as "variance analysis," a principal function in management accounting. Dissimilar financial accounting, which concerns the recording of historical business transactions for all interested parties, management accounting focuses on producing forward-looking information, such as developing budgets and measuring performance, for managers for internal, private uses. Management accounting helps managers in formulating business strategies, planning business activities and assessing business results. Providing decision-oriented information, management accounting serves as a mechanism for better management

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