Prepare variance analysis between budgeted and actual figure

Assignment Help Finance Basics

Reference no: EM133171015

BSBFIM601 Manage finances

Assessment Task:

Background: You are required to compare their budgeted figures against actual figures

Task: 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

Reference no: EM133171015

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