if they budgeted 117000 and achieved 36000 then the variance would be 80000 adverse because it was lower than expected?
They didn't achieve 36000 profit, they made a loss of 36000. You got a negative figure when you worked out the actual profit, but it wasn't a profit it was a loss
They didn't achieve 36000 profit, they made a loss of 36000. You got a negative figure when you worked out the actual profit, but it wasn't a profit it was a loss
Yeah spot on. The mistake most people made was thinking the firm was making a profit whereas they were actually making a loss. So therefore the budgeted figure minus that loss should give you 153/154 (000s) something adverse profit variance
No you have done budget-actual, it is budget-- (minus, minus) actual which is a plus. So technically you're saying they have an actual of 36 or whatever it is, not -36. The difference between the actual and the budget is 154500 adverse
Yeah spot on. The mistake most people made was thinking the firm was making a profit whereas they were actually making a loss. So therefore the budgeted figure minus that loss should give you 153/154 (000s) something adverse profit variance
I knew they made a loss but I didnt think of looking at the figures properly to see if it made sense lol. ah well hopefully done better on the other questions!
Guys how do everyone think about their exam? Anyone know about the grade boundaries? For me, I don't think I did good on this one. So many messed up answer I wrote. feel really bad!
I'm pretty sure it was 154,500 The real profit was like -30,000 or something so they made a loss and they budget to make around 120,000 so the variance was (154,500) I'm pretty sure this was correct, quite tricky for a calculation question!
I'm pretty sure it was 154,500 The real profit was like -30,000 or something so they made a loss and they budget to make around 120,000 so the variance was (154,500) I'm pretty sure this was correct, quite tricky for a calculation question!
Guys how do everyone think about their exam? Anyone know about the grade boundaries? For me, I don't think I did good on this one. So many messed up answer I wrote. feel really bad!