Actual Cost - What is the difference between budget and actual cost?

Q: What is the difference between budget and actual cost?

Budget - an estimate of revenues and expenses for an account for a fiscal year. Actuals - the actuals reflect how much revenue an account has actually generated or how much money an account has paid out in expenditures at a given point in time during a fiscal year.

Answer

The term "budget" refers to an accounting system's projected income and expenditures for a certain fiscal year. Accounts' actuals show the amount of money that has really been received or spent at a specific point in time within a fiscal year.

Actual Cost - What is the difference between budget and actual cost?

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