Can anyone here clarify the chart for me? I emailed the TA and have not got a response. I have racked my brain over this thing!
I am confused about the column that states "This month's budget" in the revenue row. The 'actual' is 300,000. This months budget is 350,000. The variance is 50,000.
Ok, so what does this mean?? To me this says that the unit is under 50,000 of what its projected performance is....meaning its losing money. I got this rationale because in the text on page 669 it states 'projected (budgeted) performance'. So I applied this to the case study.
Shouldn't this be indicated with (50,000) in the variance column instead of 50,000 showing a loss???
**OR**
Am I completely reading TOOO much into this? And the budget for the unit is 350,000 and they have saved 50,000 dollars?
Actually I think that the lack of parentheses are an error on her part. I actually looked up favorable and unfavorable variances.....(im a dork!) and found that TECHNICALLY the 50,000 should be (50,000) because this is unfavorable.
If you look in the text at figure 30.3, the variance for the revenue is displayed as (15,000) because of the difference between the 165,000 (actual) and the budget of 180,000. This difference is unfavorable-the unit did not bring in the expected amount.
I let her know in my communication that I felt that the chart was in error. Also, the Actual for the year is 3.5 million, the budget is 3 million. The variance is incorrectly displayed as (500,000). This is in fact a FAVORABLE variance and should be displayed without the ().
my understanding is that the anticipated amount was 3 million for the year. The actual is 3.5 therefore they are up 500,000. This is my interpretation of this darn thing....it has OFFICIALLY given me a migraine and as long as I pass this class...I no longer care....that is sad but true...
I don't care anymore either, but I also don't have a choice because I already submitted it. With all the mixed info from TA and peeps here, I am confused lol
I don't care anymore either, but I also don't have a choice because I already submitted it. With all the mixed info from TA and peeps here, I am confused lol
my husband looked at it last night and thought the same thing regarding the parentheses. He also thought the grid was wrong because "parentheses means a loss, unfavorable,less than". I'm JUST starting mine now. I'm wondering if that was something we were "suppose" to catch. I'm getting 8 paragraphs on the paper and turning it in!
I was curious so I had to go back and look at what I wrote. Yes - there is a negative variance for the month meaning she was over budget - this could be for a variety of reasons - use of temporary staffing, increase in the cost of supplies, etc. For the year, her department revenues were higher than projected costs - due to increased use of services offered by her department.
So, I thought I was well-prepared for the quiz and when I opened it I still felt good about it....until I started and I failed miserably. Only got a 40% on it. Geez, how about that. I'm glad there are not as heavily weighed as in community and that the rest of the assignments will be high grades. I also learned that I better never go into financing...
So, I thought I was well-prepared for the quiz and when I opened it I still felt good about it....until I started and I failed miserably. Only got a 40% on it. Geez, how about that. I'm glad there are not as heavily weighed as in community and that the rest of the assignments will be high grades. I also learned that I better never go into financing...
I'm taking the quiz later today. I'm trying to get more information into my head. LOl....I have never been so happy for week 5. I have to still take the community quiz today.
I'm taking the quiz later today. I'm trying to get more information into my head. LOl....I have never been so happy for week 5. I have to still take the community quiz today.
Thank God week 5 is upon us!! Community quiz really was not bad at all!
Inimica18
201 Posts
That is exactly what I am thinking haha. Business skills and budgeting I really have no sense for and it is just so boring