ABSTRACT
Where there is a system of budgetary control in operation, it is essential to ensure that all deviations from budgeted results (variances) are analysed and reasons for their occurrence established. Let us assume that at the end of a budget period the following information is available.
|
Budget |
Actual |
|
|
£ |
£ |
|
|
Sales |
100,000 |
110,000 |
|
Food and beverage costs |
40,000 |
47,000 |
|
Labour costs |
30,000 |
33,000 |
|
Overhead costs |
20,000 |
21,000 |
|
Net profit |
10,000 |
9,000 |
|
£100,000 |
£110,000 |
