1. Suggest possible reasons for the variances identified. Analyse what you think has happened and the...

  

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1. Suggest possible reasons for the variances identified. Analyse what you think has happened and the knock-on effects this will possibly have on the business in both the short and long term. 2. Would the management team be happy with these results overall? Discuss reasons why. 3. What areas would they want to see improved and how might they go about doing so? 4. Is a favorable variance always a good thing? Consider ways that favorable variances may impact a business negatively. 5. Is an adverse variance always a manager's fault? Discuss possible reasons why this might not be true. Sales of Varsity jackets Sales of BSB jackets Total sales Itern Marketing and promotion Administration Wages Raw materials Total costs Profit/loss Budgeted figure (£m) 200 356 46 32 65 89 Actual figure (£m) 187 362 55 38 66 79 Variance(£m) 1. Suggest possible reasons for the variances identified. Analyse what you think has happened and the knock-on effects this will possibly have on the business in both the short and long term. 2. Would the management team be happy with these results overall? Discuss reasons why. 3. What areas would they want to see improved and how might they go about doing so? 4. Is a favorable variance always a good thing? Consider ways that favorable variances may impact a business negatively. 5. Is an adverse variance always a manager's fault? Discuss possible reasons why this might not be true. Sales of Varsity jackets Sales of BSB jackets Total sales Itern Marketing and promotion Administration Wages Raw materials Total costs Profit/loss Budgeted figure (£m) 200 356 46 32 65 89 Actual figure (£m) 187 362 55 38 66 79 Variance(£m)

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