Assignment 1: Variance Analysis Report In order to perform a variance analysis report Jenkins calculated the actual revenues and expenses and found the difference which was $296‚610 in profits. Then Jenkins did the same with budgeted values and found the budgeted profits to be $606‚350. The variance amount in turn is $309‚960 under budget. Also‚ the variance amount for revenues is $32‚100. This number is favorable due to the fact that they made more than what they had budgeted for. But on the contrary
Premium Cost Costs Variable cost
BUSINESSSCHOOL Software Associates Susan‚ I have just seen the quarterly P&L. It’s great that we exceeded our billed hours and revenue targets. But why‚ with higher revenues‚ is our bottom line less than half of what we had budgeted. Can we have a meeting tomorrow morning at 8 AM so you can explain this discrepancy to me? Richard Norton‚ CEO of Software Associates Norton‚ the founder and CEO of Software Associates called Susan Jenkins‚ CFO of Software Associates‚ after skimming the
Premium Expense Revenue Income statement
Software Associates 1. Actual Budget Actual - Budget Revenue 3‚264‚000 3‚231‚900 32‚100 Expense 2‚967‚610 2‚625‚550 342‚060 Op Profit 296‚390 606‚350 Profit % 9.1% 18.8% Budgeted Op Profit 606‚350 Revenue Var F 32‚100 0840103Expense Var U (342‚060) Actual Op Profit 296‚390 This will
Premium Expense Operating expense Income statement
Software Associates Executive Summary Software Associates was founded by Richard Norton in 1990 in order to perform system integration projects for clients. During the rapid technological growth of the 1990’s the company grew and prospered. Annual revenues exceeded $12 million‚ and profit margins were generally between 15%-20%. Their services include a contract business which offers clients experienced consultants to implement personalized IT tools and solutions. However‚ in 2000‚ founder and CEO
Premium Cost Costs Expense
Analysis of Variance Lecture 11 April 26th‚ 2011 A. Introduction When you have more than two groups‚ a t-test (or the nonparametric equivalent) is no longer applicable. Instead‚ we use a technique called analysis of variance. This chapter covers analysis of variance designs with one or more independent variables‚ as well as more advanced topics such as interpreting significant interactions‚ and unbalanced designs. B. One-Way Analysis of Variance The method used today for comparisons of
Premium Analysis of variance Normal distribution
dealing with profitability‚ every company has to make a good decision. It is quite critical for manager to use the variance analysis tools properly. By using variance‚ managers can make adjustment on their company performance in order to achieve the highest profit. Variance is actually a difference between actual and what planned. What we plan is also called budgeted. Variances analysis is so important when there are a planning and controlling management. They help managers in sketching their strategies
Premium Management Variance Normal distribution
Variance Analysis: Year 6 In this part of the report‚ we analyze the variances between our pro-forma statements we had projected and the actual results we received from the BPG game. Looking at the variances‚ it can be seen that most of the numbers compared are not too far apart from each other when comparing our actual numbers to the projected analysis. This is due to the fact our forecast was successful. It was however not 100% accurate in terms of predicting our future numbers. Looking at the
Premium Income statement Expense Balance sheet
Running head: VARIANCE ANALYSIS Variance Analysis Amilca Simeon Grand Canyon University Variance Analysis This is a paper to explain the variance in the monthly budget for the hospital department. This will determine if the budget cause our department to run efficient and effective. While the variance analysis is the best way to measure performance the results in the monthly budget showed that salaries were higher and supplies came in lower. What variances allowed salaries
Premium Variance Salary The Higher
LC•GC Europe Online Supplement statistics and data analysis 9 Analysis of Variance Shaun Burke‚ RHM Technology Ltd‚ High Wycombe‚ Buckinghamshire‚ UK. Statistical methods can be powerful tools for unlocking the information contained in analytical data. This second part in our statistics refresher series looks at one of the most frequently used of these tools: Analysis of Variance (ANOVA). In the previous paper we examined the initial steps in describing the structure of the data and explained
Premium Analysis of variance Statistics Statistical significance
ACT 5060 – Accounting for Decision Makers. Submitted to: Dr. Wonnell Submitted by: Daniel Castelblanco N01377525 7975 SW 86 St. Miami‚ FL 33143 Cell: (786) 546-5408 Date of Submission: September 7‚ 2012 Title of Assignment: Variance Analysis CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I used data‚ ideas of
Premium Variance Direct material price variance Cost