Budget variances occur when: a. None of the answers are correct b. actual expenses do not match budgeted expenses exactly c. both actual expenses do not match budgeted expenses exactly and/or actual revenues do not match budgeted revenues exactly d. actual revenues do not match budgeted revenues exactly

Answer: Option (c) is correct.

Explanation:

The budget variances occurs when both both actual expenses do not match budgeted expenses exactly and/or actual revenues do not match budgeted revenues exactly.

Both budgeted expenses and budgeted revenue are components of budget.

Hence, if there is any variances occur in the budget, this is only due to the differences in the actual expenses and budgeted expenses or differences in the actual revenue and budgeted revenue.