Reference no: EM133175063
BSBFIM601 Manage finances
ASSESSMENT
Background: You are required to compare their budgeted figures against actual figures
Using the figures below you will need to compare the budgeted figures against actual figures
Ed's Whitegoods 1-year result:
Total Sales: $1,623,000
Total Purchases: $701,400
Total Expenses: $402,000
Students are to undertake the following:
• Prepare a variance analysis between budgeted and actual figures
• Ensure report demonstrates major differences
• What was the discrepancy?
- Is the discrepancy a positive or negative one?
- Locate the area and give at least 5 reasons why the discrepancy may have occurred
• Utilise the data provided to determine the effectiveness of the cost budgeting techniques used
• Lastly, students should give recommendations as to how their variance may be corrected for future budgets for the business.
The variance report should be submitted along with a written report detailing the student's answers to the above questions.
Keep your message simple and effective.
Assessment Summary
You are to submit the following evidence / perform the following tasks
• revised budget
• budget assessment report
• feasibility report