BSBFIN601: ABC PTY LTD Variance Analysis and Financial Report FY 2018

This report provides a variance analysis for ABC PTY LTD for the financial year 2018, comparing actual financial results against budgeted figures. The analysis includes revenue, cost of goods sold, gross profit, and various expense categories such as wages, superannuation, payroll tax, rent, advertising, repairs, cleaning, utilities, accounting fees, legal fees, insurance, interest, and depreciation. The report highlights significant variances exceeding 2%, which require further investigation according to the business plan. These variances span across cost of goods sold, payroll taxes, rent expense, advertising expense, cleaning expense, utilities expense, accounting expense, legal fees, insurance expense, interest expenses, and depreciation expense, offering insights into areas needing management attention and potential corrective actions. The report also includes net profit before and after tax, providing a comprehensive overview of the company's financial performance relative to its budget.

ADVANCE DIPLOMA OF LEADERSHIP 1
Student declaration:
To be filled out and submitted with responses
 I declare that this task is all my own work and I have not cheated or plagiarised the
work or colluded with any other student(s)
 I understand that if I am found to have plagiarised, cheated or colluded, action will be
taken according to process explained to me
 I have correctly referenced all resources and reference texts throughout these
assessment tasks
 I understand the rights to re-assessment
 I understand the right to appeal the decisions made in the assessment

ADVANCE DIPLOMA OF LEADERSHIP 2
Contents
Purpose of the report:.................................................................................................................3
Assessment 4:.............................................................................................................................3
Task 4: Variance report:.............................................................................................................3

ADVANCE DIPLOMA OF LEADERSHIP 3
Purpose of the report:
The main purpose of this report is to analyse the variances between the actual and the budget
data and figures, implement the budgets. Further, this report talks about the various rules and
regulations that each company has to follow and meet when it comes to conducting the
business operations.
Assessment 4:
Task 4: Variance report:
The following report shows the variance report for FY 2018:
Actual Budget Variance
Revenue
Sales 24,05,113.00 26,82,328.50 -2,77,215.50
Less: Cost of goods Sold 9,16,250.00 8,31,521.84 84,728.17
Gross Profit 14,88,863.00 18,50,806.67 -3,61,943.67
Expenses:
Wages 13,90,000.00 14,42,612.50 -52,612.50
Superannuation 1,32,050.00 1,37,048.19 -4,998.19
Payroll Tax 59,837.00 39,654.21 20,182.79
Rent 1,12,500.00 1,14,750.00 -2,250.00
Advertising 38,750.00 42,000.00 -3,250.00
Repairs 7,695.00 3,289.50 4,405.50
Cleaning 11,225.00 13,770.00 -2,545.00
Utilities 10,695.00 8,937.75 1,757.25
Accounting Fees 12,250.00 12,877.50 -627.50
Legal Fees 7,148.00 - 7,148.00
Insurance 16,697.00 16,761.15 -64.15
Interest 5,240.00 3,920.00 1,320.00
Depreciation 1,16,098.00 73,621.25 42,476.75
Total Expenses 19,20,185.00 19,09,242.04 10,942.96
Net Profit Before Tax -4,31,322.00 -58,435.38 -3,72,886.62
Less: taxes @ 30% -1,29,396.60 -17,530.61 -1,11,865.99
Net Profit After Tax -3,01,925.40 -40,904.77 -2,61,020.63

ADVANCE DIPLOMA OF LEADERSHIP 4
Since the business plan states that any variance above 2% shall be investigated, hence the
following variances and the heads of the expenses must be investigated:
Cost of goods sold
Payroll taxes
Rent expense
Advertising expense
Cleaning expense
Utilities expense
Accounting expense
Legal fees
Insurance expense
Interest expenses
Depreciation expense