Budget Variances | A-Level & IB Business

In this video, Jim explains budget variances.

#alevelbusiness #businessrevision #aqabusiness #tutor2ubusiness #alevels #edexcelbusiness #businessalevel

VIDEO CHAPTERS
0:00 Introduction
0:13 What is a Budget?
0:30 What is Budgeting?
0:57 Variance Analysis
1:48 Favourable and Adverse Variances
2:27 Some Simple Examples of Variances
4:08 Have a go at this Variance Question...
5:01 Possible Causes of Favourable Variances
5:49 Possible Causes of Adverse Variances

[ivettjiron]

Thank you you are amazing I should paid you instead of the university

[LLLL]

Hello, I am a little confused on whether the formula for variance analysis is "actual figure - budgeted figure" or "budgeted figure - actual figure". Someone told me I can use either way, if that is the case, for example, I would get "50 - 20 = 30" or "20 - 50 = -30". How would I know if the variance is either favourable or adverse?

[tutoru-official]

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[AndyMoradi]

on top it says operating profit was £12, 000 then on the button table i says operating profit £15, 000. im confused!!!

[AB-xjco]

great video, very well done and easy to understand. thank you!

[RatedRvlogs]

Thank you, it was very clear for me now I'm goin to be able to carry out my case study

[nilessbala]

a projection of likely consequences for the business or its objectives of each of the variances you have chosen

[ivancarlson]

What is the rule for what's considered a significant variance - >10% and over a certain absolute amount?

[sasharianrobinson]

I had some trouble with a question about adverse and favorable on a CAPE past paper but this video gave me clarification on that, thank you

[veronicamutangadura]

Very clear and easy to follow through 👏🏽👏🏽👏🏽

[ryanzhao]

Prices, costs, level of demand, level of usage.

[madhurangadhanushka]

Thanks for the video. Add some advance objectives with proper reconciliation..
(From Srilanka)

[katebonddd]

Really helpful! Quick question, what would be an example of an unexpected event in the business that would lead to unbudgeted costs?

[mariagu]

thank you!!! so detailed than my class lecture