Actual vs. budgeted overhead refers to the comparison between the overhead costs that a business incurs during a specific period (actual overhead) and the estimated costs planned before the period begins (budgeted overhead). Understanding this comparison is crucial for identifying variances, which helps management evaluate operational efficiency and make informed decisions for future budgeting and resource allocation.
congrats on reading the definition of Actual vs. Budgeted Overhead. now let's actually learn it.