THE BALANCE SHEET POCKET BOOK phần 5 docx

CLASSIFICATION OF EXPENDITURE

CONTROL

REVENUE EXPENDITURE

● Businesses have limited resources

● Plans have to be made and resources allocated to the activities and expenditures

required to meet the business aims

● Actual expenditure is compared with planned expenditure to identify

any differences (variances)

● Action must then be taken either to:

i) bring expenditure back in line with budget, or ii) amend the budget

See further The Managing Budgets Pocketbook 40

PLANNED EXPENDITURE ACTUAL EXPENDITURE

IDENTIFY VARIANCES

COMPARE

ACTION

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