You are to use the information provided by MYOB and work collaboratively to

You are to use the information provided by myob and

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You are to use the information provided by MYOB and work collaboratively to review the actual performance against your budgeted figures. Make notes to show how you came up with your decisions. 2. Review the variance report and state any significant variances that should be investigated by you. Your team must set the criteria of what you will report on. 1 variance is recommend for each member 3. Have a general discussion as a team, the possible causes of these variances and what solutions you could consider to rectify the situations (it is expected that this will be a general discussion but give ideas and suggestions for individual work to be completed) PAGE 3
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Individual work 3 2 Executive Summary a) Any significant variances in the in the Master Budget The significant favorable variance has been identified in Electricity and gas expense head. The electricity and gas head is 5.4 % of the total expense and there is a favorable variance by 17% and $39,148.32. b) State possible causes (including changes that may have occurred in the internal and external environments) Possible Reason for Variances. There can be several reason for variance. The main causes of a favorable variance is that the budget figures of the Electricity and Gas head is overstated and assumptions made during the budget process are unreasonable. The above given reason can also be supported by the fact that total expense variance is also favorable by 7.7% and some of the expense are overstated. Another possible reason for variance is that the prices of Electricity and Gas has been decreased during the year which isn’t being accounted for during the budget process. In budget analysis we can also identify that Accommodation of Dorms has an unfavorable variance by 5.9%. The 5% vacant Dorms means that less electricity and Gas has been used and can be one of the possible cause of favorable variance in electricity and gas expense head. The 5% vacant dorms doesn’t fully support the favorable variance of 17% that gives more support to the claim that the budget figures are overstated. There can also be a possibility that favorable variance is due to efficient usage of electricity and gas as there is sufficient budget amount on staff training.
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  • Spring '17
  • Variance, general manager, MYOB, Budget Manager

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