It’s important for a company to check its accounting records to clarify and clear up any simple budgeting variances and address significant variances in order to get a clearer idea of where it stands financially.
Changing business conditions, including changes in the overall economy or global trade, can cause budget variances. There could be an increase in the cost of raw materials or a new competitor may have entered the market to create pricing pressure.
Political and regulatory changes that were not accurately forecast are also included in this category.
The best solution for avoiding budgeting variances is careful, well- researched, practical budgeting.
However, in an uncertain market or economic conditions, there may be variances – either positive or negative – in even the most well- planned spendings.
Budget variances will also occur when the management team exceeds or underperforms expectations. Expectations are always based on estimates and
projects, which also rely on the
Values of inputs and assumptions built into the budget. As a result, variances are more common than company managers would like them to be.
Part E For this part, use MS Excel features as accounting software.
At the end of November, all the tickets were sold out. The enthusiasts were checking with the event committee if there are any more tickets, but due to limited seats, the booking system was closed.
On the 1st Saturday of December, the charity program was conducted with huge success.
At the end of the program, the financial status is as below:
