What would be your reaction if you had a negative variance between your actual results

Question: What would be your reaction if you had a negative variance between your actual results and your budgeted results? Use at least 2 expenses within your department as examples to answer the following questions: What could affect the assumptions? What would be your reaction to minimize the effect on your department’s finance? What would be your reaction if you had a negative variance between your actual results and your budgeted results? Use at least 2 expenses within your department as examples to answer the following questions: What could affect the assumptions?
What would be your reaction to minimize the effect on your department’s finance?

Mr. X’s reaction to the negative discrepancy between actual and budgeted performance will be surprising. The negative variance is caused by actual costs being higher than projected costs or by a revenue shortfall. Mr. X had planned $400,000 in sales…View the full answer