Variance Analysis HCA-240 Variance Analysis The many reasons as to why the budget for this month has gone over have many factors involved. For a $5,000 favorable variance on staffing, the department head can state that the company was able to obtain a 25 % discount from a new supplier, which resulted in a savings for the department. Another example would be when you have a $25,000 unfavorable variance in sick time for many employees, the department head would state there was an
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Conveying the Yearly Sales Budget, Sales Target and Project Plans and Training team members. The purpose of these communications is to discuss the annual budget and set targets for the sales and information technology and to train my team members with this new reporting tool and share my knowledge with them. Defining the situation: The presenter of the interoperational communication is our director and the main goal is to help the project managers in laying down the budgets for each project to fall
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became the plant manager, he directed that monthly performance comparisons be made between actual and budgeted costs for each department. The departmental budgets were intended to encourage the supervisor’s to reduce inefficiencies and to seek cost reduction opportunities. The company controller was instructed to have his staff “tighten” the budget slightly whenever a
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billings, payroll, general overhead, and maintenance). • Improving customer relations (more expeditious processing of cases and clients). • Expanding the customer base. • Enhancing relations with the local communities. • Managing the annual budget and related incentive programs. • Maintaining an annual growth in sales of 10 percent while maintaining or exceeding the current profit margin.
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and B vary from 17% to 65%. What elements of cost account for the difference between the 2000 Actual and 2001 Budget margins in Table A?What elements of cost account for the difference between the margins in the original 2001Budget in Table A versus the revised 2001 Budget in Table B? For each element, why do youthink costs changed between 2000 and 2001 between the original and revised budgets in2001? What would you predict for each cost in the long-run?3. Kelly, Puleski, and Yeltin meet to discuss
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intricate business. Health care executives now have to find ways to transform a broken and out of date health cares system by focusing on reducing pointless surgeries and diagnostic test and removing disproportionate health care costs. When the annual budget presents itself and shows that salaries are steadily increasing with supplies decreasing several factors have to be considered when presenting the variance analysis report. Factors that should be considered are the number of staffing, patient bed
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Health Care Budget An operating budget is a strategic initiative for the organizations financial plans over the course of the coming year. The operating budget works directly with the Statement of Activities (SOA) for a fiscal year to accomplish the organization financial goals. To produce an effective operating budget the organization needs to have knowledge of what financial management practices work best for the financial goals they are planning to use. Proper understanding of these concepts
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Explain the major reasons for the favorable operating income variance of $71,700. The first major reason for the favorable operating income variance of $71,700 is that there have been higher sales volume than that forecasted. Essentially, higher sales volume has been responsible for the favorable operating income variance. The actual net sales are $9,657,300, whereas, the budgeted sales volume was $9,645,300. On the other hand unfavorable variance due to operations have actually decreased the favorable
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graduate cost or managerial accounting courses gain an in-depth knowledge of budgeting by developing and using a multi-product, multi-period master budget. The case consists of two segments that can be used in conjunction or separately. The first segment allows students to create a master budget. The second segment allows students to use their budgets to make recommendations for improving company performance. The use of multiple products and introduction of incentives to improve company performance
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JET2 Task 2 A1. Concerns There are many concerns with the budget planning for Competition Bike. From year 2006 to 2008, Competition Bike experienced a 13.3% increase in sales. In year 9, sales are projected to increase to 3510 units to give sales revenue of $5,247,450. This is a bold increase after 3400 units sold in 2008 and 4000 sold in 2007. I do not think the sales will be as robust with the economy rebounding. Sales projections should be 3425 with net sales at $5,120,375. Since the
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