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Question:
Explain the profit short fall. One calculation is to evaluate the amount of the shortfall. You are provided budget numbers and actual numbers and the difference in each category represents a variance that needs to be explained. Another calculation is to evaluate the budget vs. actual differences for all items. The information states that due to shortage of work fewer hours were billed than budgeted for both partner and associates - what is evaluation? The problem states that to offset the billing of hours which is revenue, some costs were contained - this should provide you a hint to look at how the costs were determined/budgeted. The problem states some of the costs were contained because of position vacancies for relates who left, which are on average three per year. What do vacancies imply? That budgeted salary dollars will not be used maybe. What is that evaluation?
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