ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increase bonus payments.
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Reduce Head Office staff numbers.
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offer promotional discounts
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Cut supplier payments for raw materials.
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Detailed explanation-1: -When conducting a budget variance analysis, you have two options: taking corrective action to reduce future variances (this is used in static budgets), or adjust the budgets as required to match actual costs (used with flexible budgets).
Detailed explanation-2: -There are three primary causes of budget variance: errors, changing business conditions, and unmet expectations.
Detailed explanation-3: -Adjusting your budget to be more realistic. Reconsidering your projected revenue by changing your prices, volumes or sales process. Increasing your customer demand by changing your product or increasing your marketing budget. More items •28-Mar-2019
Detailed explanation-4: -Calculate the difference between what we spent and what we budgeted to spend. Investigate why there is a difference. Put the information together and talk to management. Put together a plan to get costs more in line with the budget.