Management Reporting: Budgeting Control

Budgetary Control and Variance Analysis

 

WHY COMPARE ACTUAL AND BUDGET?

WHAT CAUSES BUDGET VARIANCES?download.jpg (2778 bytes)

HOW ARE VARIANCES CALCULATED

EXAMPLE

FLEXING THE BUDGET

ANALYSING THE VARIANCES

IDENTIFYING THE CAUSES

TAKING APPROPRIATE ACTION

SALES MIX

A HIERARCHY OF VARIANCES