To review the difference between budgeted amounts and actual expenditures, which metric should be analyzed?

Analyzing the variance is essential when reviewing the difference between budgeted amounts and actual expenditures. The variance provides insight into how closely the actual spending aligns with what was planned in the budget. Variance analysis helps identify areas where spending was over or under budget, allowing management to make informed decisions regarding future budgeting and financial planning.

Understanding variances is crucial because it enables effective oversight of financial performance and helps maintain accountability. It can also highlight trends that may need attention or adjustments, ensuring that funds are being used effectively to meet organizational goals.

While total expenditures, the statement of changes in fund balance, and the general ledger contain valuable financial information, they do not directly measure the differences between budgeted and actual amounts. Total expenditures show overall spending but lack the comparative aspect. The statement of changes in fund balance provides insight into the overall changes within fund balances but does not specifically focus on budgetary performance. The general ledger contains all financial transactions but requires further analysis to determine variances specifically. Thus, variance stands out as the most relevant metric for this purpose.