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hello Sir
can you please briefly explain what is aspiration buget and what does this line mean:“In choosing an aspiration budget there is an implied expectation of adverse planning variance.”
thanks
An aspiration budget is when you budget for what you want to happen (as opposed to what you think realistically will happen).
Because what you want to happen is going to be better than what you really expect will actually happen, you will expect there to be an adverse variance (but you will obviously be trying to reduce this variance).
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