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A hotel chain transfers its live reservation call center from the state of South Dakota (U.S.A.) to a private company located in Mumbai, India. This is an example of
Revenue Variance
The difference between the actual revenue earned and the expected or budgeted revenue.
Fixed Costs
Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.
Variable Costs
Expenses that fluctuate in direct proportion to the production or sales volume, for instance, direct labor and raw materials.
Budgeting
The process of creating a plan to spend your money, allocating financial resources for various purposes over a specified period.
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