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A task on variance analysis

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    Wendy C.
    AU
    Wendy C.

    The varying analysis allows for the differences between real and budgeted financial events to be recorded.

    Samuel F.
    ZA
    Samuel F.

    What is the meaning of a favorable budget variance?

    Tawi N.
    ID
    Tawi N.

    what condition shall we accept or reject an explanation?

    Harrison A.
    AT
    Harrison A.

    What does negative variance indicate ?

    Harrison A.
    AT
    Harrison A.

    Let's us illustrate variance analysis further with this example. Assume that a company had the following actual amounts in a recent month : revenues €750,expenses €525,net income @225 . For thesame month ,the company had budgeted the following amounts: revenues €900,expenses €700, net income €200 . The comparism of the actual to the budget resulted in the following variance: Revenues variance :unfourable €150 .presented as (150) . Expenses variance: favourable €175 . presented as (175) . Net income variance : favourable €25 . presented as (25) .The net income variance is favourable because the faourable expense variance was €25 greater than the unfavourable revenues variance .The favourable €175 variance exceeded the unfavourable €150 variance resulting in the net variance of €25 favourable . The example implies that the positive and negative signs for the variances are logical if we focus on the company's net income .

    Zachary B.
    US
    Zachary B.

    What is a task on variance analysis?

    Diamond T.
    US
    Diamond T.

    What is the meaning of a favorable budget variance?

    Douglas R.
    US
    Douglas R.

    Sales go up and down chagning control of stock and prices.

    Erick V.
    PE
    Erick V.

    claro un hecho negativo como el aumento del gato de publicidad se puede convertir en una hecho positivo reflejado en mayores ventas, y dejaríamos de considerarlo gasto y se convertiría en inversión objetiva, por otro lado es importante establecer el por que se produjo esta variabilidad por causas internas o externas

    Tony I.
    NG
    Tony I.

    It then means that variance analysis has to do with assumed figures?

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