# Variance

> Variance — Actual less budget (or forecast) for one line, labeled favorable or unfavorable by the line's polarity: revenue above plan is favorable, a cost above plan is not. The sign is arithmetic; the label is the finding.

Source: https://lopifi.com/glossary/variance
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is variance?** In accounting, variance means actual less budget (or forecast) for one line, labeled favorable or unfavorable by the line's polarity: revenue above plan is favorable, a cost above plan is not. The sign is arithmetic; the label is the finding.

## Also known as

- Budget vs actual

## Words this system refuses for it

- error
- a bare plus or minus

- **Category:** Finance & planning
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Rendered by:** [budget-vs-actual](https://lopifi.com/md/components/budget-vs-actual), [profit-and-loss](https://lopifi.com/md/components/profit-and-loss), [three-way-match](https://lopifi.com/md/components/three-way-match), [variance-cell](https://lopifi.com/md/components/variance-cell), [expense-tracker](https://lopifi.com/md/components/expense-tracker), [flux-analysis](https://lopifi.com/md/components/flux-analysis), [materiality-policy](https://lopifi.com/md/components/materiality-policy), [money-chart](https://lopifi.com/md/components/money-chart), [period-grid](https://lopifi.com/md/components/period-grid), [statement-table](https://lopifi.com/md/components/statement-table)
- **Related:** forecast, finding, revenue, budget