Evaluate your budget. You should identify the key problems that you faced when constructing the budget and indicate how much confidence you have in the budget that you have produced. This should include a brief consideration of alternative approaches you might have used and identifying any additional information that you 3 might have found useful in the process.

   

You are the management accountant at Trendfitters Ltd and you have been asked to prepare the budget for the year to 31st January 2022. You have collected the following data related to the operations of the business for the year to 31st January 2021; Month February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 Normal Sales ('000s) 587 203 196 312 426 301 312 720 890 759 512 671 Normal variable costs ('000s) 290 98 112 168 236 178 181 384 492 391 267 383 Normal fixed costs ('000s) 75 78 78 52 51 56 63 81 76 72 75 82 Online Sales ('000s) 0 0 63 272 312 261 107 97 92 241 366 326 Online variable costs ('000s) 0 0 32 142 175 141 53 49 51 136 201 168 Online fixed costs ('000s) 0 0 24 32 28 28 26 34 29 37 32 34