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Evaluation of Financial Performance of BlindsforShine Limited

This case study requires the analysis of BlindsforShine Limited's financial performance and the preparation of a budget report for November 2018.

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Added on  2023-06-03

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This case study assignment evaluates the financial performance of BlindsforShine Limited based on projected and actual costs. It includes a budget report for November-18 and assesses the company's financial stability in terms of sales volume and flexible budget variance. The causes of variances in revenues, direct material costs, direct labour costs, variable overhead, total variable costs, manufacturing fixed costs, and operating profit are discussed. Recommendations are provided to increase revenues and operating profit.

Evaluation of Financial Performance of BlindsforShine Limited

This case study requires the analysis of BlindsforShine Limited's financial performance and the preparation of a budget report for November 2018.

   Added on 2023-06-03

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RUNNING HEAD: CASE STUDY ASSIGNMENT
CASE STUDY ASSIGNMENT
Evaluation of Financial Performance of BlindsforShine Limited_1
CASE STUDY ASSIGNMENT 1
Contents
PART B...................................................................................................................................................2
Evaluation of Financial Performance of BlindsforShine Limited_2
CASE STUDY ASSIGNMENT 2
PART B
BLINDSFORSHINE LIMITED
EXECUTIVE SUMMARY
In this assignment, CEO of BlindsforShine Limited has evaluated the financial
performance on the basis of projected costs and the actual costs. In this assignment, budget
report is prepared for the month of November-18. The financial stability of the company has
been assessed in context with sales volume variance and flexible budget variance. Favourable
variance in terms of revenue signifies when actual results are more than budgeted results or
vice versa whereas adverse or unfavourable variance in terms of expenses signifies when
actual results are more than budgeted results or vice versa. The flexible budget variance is
computed by comparing actual figures with the flexible budget figures and similarly, the sales
volume variance is computed by comparing flexible budget figures with static budget figures.
In addition to this, after computation of budget report it has been evaluated that
BlindsforShine Limited has adverse position in terms of operating profit which has resulted
into worse financial stability of BlindsforShine Limited for November-18 month.
BACKGROUND
In this case, BlindsforShine Limited manufactures two luxury blinds for residential
use as well as commercial use. The annual production and annual sales of the company is
estimated 15000 units where 11000 units are for residential purpose and 4000 units are for
commercial purpose. Both the actual results and estimated figures are given and also given
that ABC costing is used by the firm to allocate costs in order to remain competitive in the
market.
TYPES OF VARIANCES
Evaluation of Financial Performance of BlindsforShine Limited_3

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