Budgeting - Flexible Budget Variance

Running budget: BUDGETING
Budgeting
Name of the Student:
Name of the University:
Author’s Note:

BUDGETING1
Table of Contents
Module 4: Case................................................................................................................................2
Budgeting, Variance Analysis and Performance Evaluations.....................................................2
Memo...........................................................................................................................................2
Word Essay..................................................................................................................................4
References........................................................................................................................................6
Appendix..........................................................................................................................................7

BUDGETING2
Module 4: Case
Budgeting, Variance Analysis and Performance Evaluations
Memo
To: Division Manager
Cc: T&P Fashion Shops
From: Accounts Department
Date: March 30, 2020
Subject: Flexible Budget Variance
Flexible Budget is a budget that adjusts or well flexes with the changes in volume or particular
business activity. The flexible budget would be useful for us as we go on including the marketing
expenses for the company as a inclusion to the budget panned out. The variance for the budget
prepared also has been calculated so that we are able to well understand the difference or the key
items which has led to the variance.
The issue is to address about the key variance that has been observed in the flexible budget, the
flexible budget variance has been well calculated by us after taking the forecasted set of amount
for the budget for the company and taking the actual set of numbers that were well generated by
the companies during these period analyzed. The variance that has been shown by the stores has
been unfavorable one as the actual set of numbers that have been generated is negative when
comparing the same with the actual set of numbers that was generated by the company for the
year. The difference in the budgeted amount has been primarily due to the lower set of revenues