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Analyse and interpret budget and actual financial information to monitor and review profit and productivity performanceScenario: As mentioned earlier that you have now crossed the first quarter of your operational plan, you will need to analyse and interpret the store budget after the implementation of your operational plan. The table below highlights the summary of budget that you will need to analyse.SUMMARY OF BUDGET (For Resources and Operational Plan)Resource TypeProjected BudgetActual PerformanceVariance Capital/Finance$150,000 (Profit)$120,000 (Profit)$30,000 UFHuman $200,000 (Expense)$200,000 (Expense)$0 =Physical $250,000 (Expense)$260,000 (Expense)$10,000 UFBased on the summary above, you will need to analyse, interpret and write a budget report (within 300 words) for management and explain the reasons of variations and for any underperformances. BUDGET REPORT FOR MANAGEMENTOperational Management, Assessment 1 v2 Last updated on 10/09/2019 Page 36
T-1.8.1_v3labor.- Evaluating the third type of resource, Physical we have a projected expense of $ 250,000 (expense),and our current record was $ 2600,000 (expense), thus having a variation of $ 10,000, whichrepresents an unfavorable outcome. This result may be explained by the fact that the company inthese 3 months has invested in some improvements in the physical part of the company. Anotherimportant point to take into consideration is that some items had a slight increase in their final price,which impacted our budget.3.3:Identify areas of under-performance, recommend solutions and take prompt action to rectify the situation; Ensure mentoring and coaching are provided to supportScenario: After the first quarter of your operational plan implementation, you have previously identified some issues in budget and financial performance. Now you have also realised that there areseveral areas of concerns within operations as well. First of all, you find that performance reports database that there are several failures and some positives in meeting performance objectives by your staff members and also in overall store KPIs. These include performance failures such as: