Variances between budgeted and actual revenue/expenses are quickly identifiable in a budget vs. actual report. At the highest level, managers should be examining variances in revenue and spending as compared to budget estimates. Key components of a business, such as revenue trends, materials costs, labor or an unexpected or one-time purchase, could all cause variances that might require operational adjustments or a revised forecast. In a larger sense, any line item in a business budget can be analyzed in a budget vs. actual report.