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Group Activity
An example of a budget can be seen below. After viewing the budget, identify the possible reasons for the variations.
Budget - Jul / Dec 200X
Item Description
Jul
Aug
Sep
Oct
Nov
Dec
Total
Revenue
Sales Commission
22,000
26,000
50,000
55,000
45,000
35,000
233,000
Property Management
8,000
9,000
10,000
Total Revenue
30,000
59,000
64,000
288,000
Expenses
Rent
4,500
27,000
Utilities
800
4,800
Salaries
132,000
Printing
300
1,800
Advertising
1,000
1,500
2,000
8,500
Professional Fees
4,000
0
5,000
Interest on Borrowings
6,000
Total Expenses
34,100
30,100
30,600
32,100
185,100
A Ltd sells goods at Rs.10.P.U. Its variable cost Rs.7.P.U and fixed cost amount to Rs.1,70,000 it finances all its assets by equity funds. It pays 40% tax on its income. Z Ltd is
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