Report on the budgeted versus actual outcomes, Corporate Finance

 You are required to provide a report of approx 500 words or less (excluding attachments and references), accompanied by relevant calculations, in MS Word, MS Excel and/or PDF format (or combination) with each document lodged accompanied by the Relevant Coversheet (provided). Using a Report style is recommended but not compulsory. At the end of the budgeting period, Paulo Farmer, the production manager is reviewing the actual outcomes (in particular the direct materials and direct labour) and comparing these to the budget that was originally produced (in Part A). The following data related to the actual results recorded after the end of the quarter by Wittgenstein Pty Ltd, and are provided in the assignment data sheet:

  • Actual Sales Volume for the quarter.
  • The actual volume of direct materials used during the quarter (for each part).
  • The actual cost of the direct materials used during the quarter (for each part).
  • The actual direct labour hours used during the quarter.
  • The actual cost of direct labour used during the quarter.  

 

Paulo is confused by the outcomes. He is aware that the budget that was created before the start of the quarter was a well considered and constructed estimate, and he did not expect that the actual outcomes would be exactly as forecast. However he is finding it difficult to understand the reasons for the differences.

Required:

Prepare a brief report to assist Paulo determine what might have caused the differences between the original budget and the final actual outcomes. Speculations of the causes are sufficient, provided they are supported by relevant calculations taken from the data provided, and the budget produced in Part A,. These calculations should be included in, and referred to, in your report. Restrict your discussion to the changes related to direct materials and direct labour. As Paulo is aware that budget estimates may be inaccurate at the time of budget preparation, do not include this particular cause of difference in your report.

Posted Date: 2/28/2013 5:17:25 AM | Location : United States







Related Discussions:- Report on the budgeted versus actual outcomes, Assignment Help, Ask Question on Report on the budgeted versus actual outcomes, Get Answer, Expert's Help, Report on the budgeted versus actual outcomes Discussions

Write discussion on Report on the budgeted versus actual outcomes
Your posts are moderated
Related Questions
I''m studying Accounting course, but English is my second lauguage, it''s vey hard for me to do this, and time is runing out. would you help me with an assignment about the Trible

The traditional view of credit risk relates to borrowers, firms, individuals, or financial institutions. Nevertheless, more and more specialized finance transactions deal with str


Determination of the Best Ordering Policy in Service Organisations In service organisations, the role of procurement is less developed than in manufacturing. This has been due

Pfizer Incorporated has 2 million shares of common stock, selling at $18 each. The β of the stock is 1.5, T-bill rate is 6%, and the expected return on the market is 12%. Pfizer al

Based on its Net Present Value (NPV), should the following project be accepted?  Please assume a discount rate of 10%.

In the apparel industry, three prominent developments contribute to the complexity of forecasting: shortening product life-cycles, increasing product variety, and globalization of

You are the Executive Director for the brand new Burkina Faso field office of a U.S.- based not-for-profit organization called Paper for All that distributes academic resources fo

Question 1: i) Each of the following statements has been put forward as an explanation of determinants of exchange rate: a) ‘the increase in the value of a currency is becau

why do investors pay attention to bond ratings?