A cost, income, or performance standard based on current operating conditions and established for use over a short period of time in accounting and finance.
A flexible budget adjusts budgeted income and expenditure based on changing circumstances and actual activity levels, allowing for a more accurate financial planning and performance measurement.
A detailed analysis of operational variance within the framework of standard costing, highlighting how it accounts for the difference between adjusted current standards and actual performance.
In standard costing, a revision variance, also known as a planning variance, measures the expected difference arising from the original standard and the modified standard due to changed circumstances. These variances help in understanding how accurately performance predictions align with actual outcomes.
