Question

Select the possible​ source(s) of information a company might use to compute the budgeted amount in variance​ analysis?
A. Detailed engineering studies
B. Data from other companies that have similar processes
C. Past amounts
D. All of the above

Answer 1

Answer:

D) All of the above

Explanation:

A variance analysis measures the difference between actual and planned revenue and costs.  

In order to prepare reliable and effective budgets we must use technical information regarding expected sales volumes and costs. We can use our own companies past amounts and similar competitors' data as an starting point for our budget.