T&P Fashion Shops: Budgeting, Variance Analysis Report

This report analyzes the budgeting and variance analysis for T&P Fashion Shops, focusing on the Houston store. It includes a memo to the division manager discussing the flexible budget variance, which was unfavorable due to lower revenues. The report recommends against including marketing expenses as a percentage of sales due to potential negative impacts on operating cash flows. It also highlights the importance of detailed forecasting to reduce variance. The report further provides an essay discussing budgeting, variance analysis, static budgets, and flexible budgets, along with their advantages and objectives. It emphasizes the role of variance analysis in cost control and performance evaluation. The appendix provides a breakdown of the Houston store's financials, including forecast, actual, and variance data for revenues, cost of sales, and various expenses.