the system that compares actual results to a budget so that significant deviations can be flagged and investigated further is called.
What is the system that compares actual results to a budget so that significant deviations can be flagged and investigated further called?
Answer: The system that compares actual results to a budget in order to identify significant deviations and investigate them further is referred to as “Variance Analysis.” This process involves evaluating the differences between planned financial outcomes and the actual results to understand the reasons behind the discrepancies. Through variance analysis, organizations can gain insights into their performance, make informed decisions, and take corrective actions to improve their financial management practices.
