Budget variance is the difference between the budgeted amount and actual spend for a department, team, project or activity. It is often expressed as a percentage of the budget. For example, it is common to report spend is at 120% of budget, meaning that you have a 20% budget variance classified as an overspend. It is also possible for a budget variance to be an underspend such as a project that comes in at 50% of budget. Although this is favorable, it is viewed as a planning error that unnecessarily committed funds to a project that weren't needed. As such, it is common for the effectiveness of financial planning and control to be evaluated by variance whether positive or negative.
Information Technology Metrics
This is the complete list of articles we have written about information technology metrics.
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A list of commonly used IT metrics.
The difference between a baseline and a benchmark.
The difference between a metric and a measurement.
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