Answer to Question #62635 in Accounting for jane

Question #62635
Expenses Details Actual ($) Budget ($) Variance ($) Rent 16,000 15,000 1,000 Advertising 220,000 250,000 30,000 Office Salaries 550,000 500,000 50,000 Promotion 150,000 140,000 10,000 Jack had great difficulty understanding the report, as he hadn’t been told what a variance is and didn’t understand the concept of budgetary control. He thought the report was rather unfair, as Office salaries included salaries of accounting and administrative staff over whom he had no control. Also, the rent paid, although relating to his department, was negotiated by the managing director. Jack raised these concerns with the accountant, who told him that he was not expected to do anything about the report; it was only ’for the record’. You are required to comment briefly on the above.
Expert's answer
The accountant did not expect to do anything about the report, because it was only ’for the record’ and there is no need to do very detailed analysis of the costs, as this expenses budget provides only the actual and planned total sums of costs.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

New on Blog