How might the materiality threshold level set for negative deviations differ between a small and large business?
Why are the variances from budgets and forecasts important to know?
The materiality threshold level set for negative deviations for a small business will be lower than for a large business. A budget variance is a periodic measure used by governments, corporations or individuals to quantify the difference between budgeted and actual figures for a particular accounting category. Source: https://www.investopedia.com/terms/b/budget-variance.asp