Understanding Underspent in Business Budgeting

Underspent refers to the amount by which the actual expenditure is less than the budgeted expenditure. In other words, it is the difference between the planned expenses and the actual expenses. For example, if a company budgets $100,000 for marketing expenses but only spends $80,000, then the underspent amount would be $20,000 ($100,000 - $80,000).

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