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PEYTON APPROVED BUDGET VARIANCE REPORT.
Added on -2019-09-16
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PEYTON APPROVED BUDGET VARIANCE REPORT(An) Operating Budgetbudget is a detailed statement which shows estimated Incomesincomes and Expensesexpenses of an organization based on the forecasted sales revenueduring a given period. It generally consists of various budgets such as Sales Budget,Purchase Budget, and Production Budgets etc. A variance analysis is a measurement of(the) variance between actual cost and the standard cost. Thus Variancea varianceanalysis can be used to review the performance of an organization.A divergence from the predetermined rates, expressed ultimately in money value,generally used in standard costing and budgetary control system [This is a sentencefragment.]. Variances which are profitable for the organization are known as Favorablefavorable variance(s) whereas variances which increase the cost for the organization areknown as Unfavorableunfavorable variance(s). Material cost variance is the differencebetween the standard material cost for actual output and (the) actual cost incurred.Material efficiency variance is the difference betweenin material costs due to the usageof material. Labor cost variance is the difference between the standard labor cost foractual hours worked and (the) actual wages paid. Labor efficiency variance is thedifference between actual hours worked by the workers for production of units and thestandard hours required to produce the actual quantity.The variance(s) may arise due to the inaccurate budgeting, Changes in the economicrealities, and Employmentemployment theft [This is a sentence fragment.]. Theinaccurate budgeting means due to (a) bad guess of Incomeincome and expenses of thefuture periods [It means what?]. The change in economic realities refers to the companyis experiencedexperiencing an increase in cost or decrease in revenue due to change(s) inthe market conditions. The Employmentemployment theft refers to employeesperpetuatesperpetuating theft or fraud which is difficult to detect and becomes the reasonfor the variance for the performance of the company.(An) Operating Budgetbudget is essential for an organization for the preparation ofMastermaster budgets. Variance analysis helps management in the determination ofdetermine (the) reason for these variance and (the required) corrective action thereon.Good start! However, you need to provide more detail on the specific variances you calculated for Peyton Approved. What were the cost/price, efficiency, and total variances for labor and materials? You also need to discuss the potential causes of those specific variances.
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