Could someone tell me the difference in these formulas?
(+Budget/Actual)-1
((Actual - Budget)/Budget) |
Could someone tell me the difference in these formulas?
This is not an excel question, but here is the answer
(+Budget/Actual)-1 Budget Actual = -------- - -------- Actual Actual Budget - Actual = ---------------- Actual ((Actual - Budget)/Budget) Actual - Budget = ---------------- Budget Do you see it now??? "Mel" wrote in message ... (+Budget/Actual)-1 ((Actual - Budget)/Budget) |
Could someone tell me the difference in these formulas?
"Mel" wrote:
(+Budget/Actual)-1 ((Actual - Budget)/Budget) The first formula is effectively (budget-actual)/actual. Conversely, the second formula is effectively (actual/budget)-1. Now you can see the difference. The first formula is the percentage difference between "budget" over "actual". The second formula is the percentage difference between "actual" over "budget". The second formual is typically what want in this context. It answers the question: "what percentage over-budget are we?". But if you change the names, both formulas might be equally valid, depending on what you want. For example, if "budget" is "myDistance" and "annual" is "yourDistance", the first formula answers the question: "what percentage more (or less) did I travel?"; and the second formula answers the question: "what percentage more (or less) did you travel?". HTH. |
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