What is a budget variance and how should a budgeting team respond to significant variances?

• A. The difference between forecast and completed project scope; respond by changing goals.
• B. The difference between actual results and the budget; respond by investigating drivers, updating forecasts, and adjusting plans or reallocating resources.
• C. The difference between planned and actual headcount; respond by hiring more staff.
• D. The delta between two budgets; respond by merging budgets.

Answer: (B)