budgettoleranser
Budgettoleranser refer to the acceptable range of deviation from a planned budget. In financial management, it is often impractical or impossible to adhere to a budget with absolute precision. Therefore, a budget tolerance is established to define how much actual spending can exceed or fall short of the budgeted amount before it is considered a significant issue requiring attention or corrective action.
These tolerances can be applied at various levels, from overall project budgets to individual line items. They
Setting appropriate budget tolerances is crucial for effective financial control. If tolerances are too tight, it