Budget variance is the difference between the budget and the performance, or productivity that is actually done Budget variance is done with an acquisition of data from several sources such as reports and specified budget areas especially when it is based upon a line by line review points. Although budget variances are common, it is optimal for healthcare organizations to have a small budget variance so that they know their budgeting strategies are on track (Dunham-Taylor & Pinczuk, 2015, p. 501). Subsequently, budget variances are often investigated for reasons such as; size of the variance: variances greater than 10% or greater; trending: to evaluate past and present patterns variance; as well as cost: to determine if the investment is
