Question: Analyze budget variances and evaluate performance for a retail store chain. Budgeted Costs Actual Costs Store Rent $100,000 Utilities $20,000 Salaries $150,000 Inventory Purchases $300,000

Analyze budget variances and evaluate performance for a retail store chain.

Budgeted Costs

Actual Costs

Store Rent

$100,000

Utilities

$20,000

Salaries

$150,000

Inventory Purchases

$300,000

Revenue

$600,000

Requirements:

Calculate the total variance for each budgeted cost item.

Analyze the reasons for favorable or unfavorable variances.

Recommend operational improvements to enhance cost efficiency and profitability.

Discuss the role of variance analysis in performance evaluation and managerial decision-making.

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