What is the term for the comparison between actual and projected expenditures?

Variance analysis is the systematic approach used to evaluate the differences between actual financial outcomes and projected or budgeted expenditures. This analysis helps identify discrepancies, allowing managers to understand where performance deviates from expectations. By assessing variances, organizations can investigate the reasons for cost overruns or savings, make informed decisions, and implement corrective actions if necessary. This process is crucial for effective financial management, budgeting, and operational efficiency.

The other terms provided do not fit this definition. Indirect costs refer to expenses that are not directly linked to a specific project or service but are necessary for the overall operation. Budget forecasting involves predicting future financial performance based on historical data and assumptions, but it does not specifically address actual versus projected expenditures. Cost-benefit analysis is a method used to evaluate the financial return of a particular investment or project, comparing the respective costs to the expected benefits over time.