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Actual hours; Budgeted hours; and Standard hours

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Actual hours; Budgeted hours; and Standard hours

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • September 26, 2021 at 7:08 pm #636539
    Natasha1996
    Member
    • Topics: 34
    • Replies: 22
    • ☆☆

    What is the difference between Actual hours; Budgeted hours; and Standard hours?

    I don’t really see a difference between both of them please help me understand these terms

    Thank you.

    September 27, 2021 at 8:38 am #636563
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    I would assume that you are asking in the context of variance analysis.

    The standard hours are the hours that each unit is budgeted to take.

    The budgeted hours are the total number of hours that they expect to use.

    The actual hours are the hours that they actually end up taking, which might be more or less that the hours they budgeted/expected to take.

    I do explain all of this in my free lectures. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.

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