Skip to main content

Budget Preparation And Variance Analysis

Budget Preparation And Variance Analysis
Excel: In order to minimize errors, improve accuracy, and increase efficiency use formulas in all cells. If you need assistance with Excel review the week one questions thread. Included therein are three options to help you advance your Excel skills. Two links at the bottom are titled “Formula Overview” and “Excel - Basic Math”. The third option is Excel Essential Training (week one learning activities). The tutorials will help you with, in part, formulas and spreadsheet format. 
Video: In order to gain experience and insight please review the following video. It is a simple presentation and will help everyone develop a basic understanding of flexible budgets. The video was created by a third party.
There are additional videos included with the Bing search as well.
Flexible Budget Example
Flexible Budget Guidance: For additional information regarding flexible budgets please review the following.
Click Here For More Details on How to Work on this Paper......
Need a Professional Writer to Work on this Paper? Click Here and Get this Essay Done ………
What is a flexible budget?
Based on the example, fixed expenses do not change with volume. Contrary, variable expenses change with volume.
With respect to the case study the same principles apply. The only difference is that our variable expenses will change based on sales volume instead of machine hours.
Example:
Sales Volume 2,640
Feed cost per animal 3.13
Total feed cost = 3,000*3.23=8,263
Advertisement, Bedding and Specialty Food Expense: Advertisement is a fixed expense at the 2,640 volume level (column F). As a result, column F, row 17 is equal to -0-. However, the expense is considered a mixed cost (fixed and variable) with the flexible budget (column H). Bedding and specialty food does not apply to the prior year income statement (column F). As a result, column F, rows 18 and 19 is equal to -0-. For further clarification my suggestion is to read the instructions tab.
Variance and Variance Explanation: A variance is the difference between two numbers. From a budget perspective we typically compare actual business results to our budget. Material deviations are analyzed to help us plan, in part, cash flow, revenue projections, expense levels, and to make informed business decisions.
Calculate the variance for all items listed on the spreadsheet (i.e. sales, all variable and fixed expenses, contribution margin, net income, and the break even computation).
Column J: Enter the difference between actual results and the budget.
Column L: Explain the difference

Comments

Post a Comment

Popular posts from this blog

Tracy, one of your friends, is in the early stages of conducting a feasibility analysis for a small business consulting company.

Tracy, one of your friends, is in the early stages of conducting a feasibility analysis for a small business consulting company. Understanding the target audience and the marketing mix is a mandatory step for achieving success in her new venture. Branding is equally important. In this assignment, you will act as a consultant to Tracy to find the best answers to her problems related to understanding the market and planning and executing the correct marketing strategies. Tasks: Respond to the following questions: How would you advise Tracy to approach the following topics? Market segmentation Selection of a target market Development of a positioning strategy You are familiar with the concept of branding and know that because her company is new, she will have to build a brand from scratch. What needs to be done in this case? Submission Details: By the due date assigned,post your responses to this Discussion Area. Through the end of module, respond to at least two of your classmates' p...
Post a Comment
Read more

Case 7.1, “His Team Gets the Best Assignments” (pp. 151–152)

Case 7.1, “His Team Gets the Best Assignments” (pp. 151–152) There have been many stories throughout history of leaders who have been corrupted by their power. The very definition of leadership as “a process by which an individual influences the group to achieve a common goal” (Northouse, 2016, p. 6) implies the power to exert influence. Leaders must exert power in order to lead, but they must also strive to understand the complexities of power. Research by French and Raven (1959) and by others (Burns, 1976; Neck & Manz, 1994) provides insight on the types, or bases, of power available to a leader, the process of choosing among those bases, and the motivations for leaders’ choices (Northouse, 2016, p. 379). Recent researchers (Barbuto & Warneke, 2014; Vevere, 2014) also explore the effectiveness of using individual bases of power in particular situations and the effects certain bases of powers have on leaders and those they lead. Armed with this information, leaders can avoid u...
Post a Comment
Read more

Scenario: You have been promoted to senior level manager of a company with low employee morale and decreased productivity

Scenario: You have been promoted to senior level manager of a company with low employee morale and decreased productivity. You have been tasked with developing a strategic plan for the workforce to present to the CEO and other members of the leadership team.  Chosen Organization :Kaiser Permanente Hospital Create a 10- to 12-slide PowerPoint® presentation including the following:  Explain rationale for plan Discuss SWOT of organization Summarize one year plan of action Flowchart of one year plan Give an overview of Budget for plan Evaluate the potential benefit of the plan Write conclusion Proper citation of animation or graphics is required if any is used Click Here For More Details on How to Work on this Paper...... Need a Professional Writer to Work on this Paper?  Click Here and Get this Essay Done ………
Post a Comment
Read more