You are the Budget Analyst for a small company. One of your primary tasks is to...
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You are the Budget Analyst for a small company. One of your primary tasks is to carefully monitor expenses to ensure you do not spend more than allocated/budgeted by the top management. Requirements: Your manager has asked you to generate a report using the following criteria: 1) Develop a table using the information provided in Attachment 1 (do not forget columns for rent and insurance). 2) Utilize cell arithmetic. 3) Provide totals for each expense category (e.g., salary column) and for each month row. 4) Calculate the following: a) Average of the actual expenses incurred for each expenses category. b) Estimate to Complete (ETC). This is the amount you are forecasting will be spent for each of the expense categories for the remainder of the year. (Use the monthly average times the number of remaining months except for the insurance and rent payments) c) Estimate at Completion (EAC) - total actual expenses plus the ETC from b) above. d) Difference between the budget (attachment 1) and your EAC for each expense category and the total budget. 5) Generate a Column chart based on the differences for each expense category between the Budget and the EAC (e.g., Salary, Supplies, etc.). There should be 2 data series. Include the following in the chart: a) Chart Title as "Difference Comparison". b) Data Labels under each expense category/column. 6) Generate a report to your supervisor indicating your findings. Include the following: a) Introduction explaining why you have decided to perform this analysis. b) Methodology utilized. c) Findings of your analysis. Develop a single table that shows all calculations. Provide a narrative of the significant differences between the budget and EAC. d) Recommendations. Suggest a course of action that should be taken in order to ensure that the established budget is not exceeded. Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec Salaries 15,520 11,987 13,744 15,521 14,555 13,645 1,256 13,764 753 14,542 994 Supplie S Salaries Supplies Phone Utilities Travel 968 1,546 695 962 789 Annual Budget Information: Amount 160,000 12,000 3,200 6,000 15,000 Training Rent 8,000 38,000 Insurance 2,200 Advertising 12,000 Phone 280 280 280 485 280 280 280 280 Utilities Travel Training 654 798 457 857 864 648 732 312 Monthly rent for the office is $3,125 Insurance is $195 (per month) for the first 4 months and goes up to $225 in May 62.4 4.7 1.2 2.3 5.9 684 1,524 495 985 534 3,128 490 1,256 515 2,578 652 2,186 732 1,893 829 2,458 3.1 14.8 0.9 4.7 Advertisin 9 856 979 675 612 978 789 777 926 You are the Budget Analyst for a small company. One of your primary tasks is to carefully monitor expenses to ensure you do not spend more than allocated/budgeted by the top management. Requirements: Your manager has asked you to generate a report using the following criteria: 1) Develop a table using the information provided in Attachment 1 (do not forget columns for rent and insurance). 2) Utilize cell arithmetic. 3) Provide totals for each expense category (e.g., salary column) and for each month row. 4) Calculate the following: a) Average of the actual expenses incurred for each expenses category. b) Estimate to Complete (ETC). This is the amount you are forecasting will be spent for each of the expense categories for the remainder of the year. (Use the monthly average times the number of remaining months except for the insurance and rent payments) c) Estimate at Completion (EAC) - total actual expenses plus the ETC from b) above. d) Difference between the budget (attachment 1) and your EAC for each expense category and the total budget. 5) Generate a Column chart based on the differences for each expense category between the Budget and the EAC (e.g., Salary, Supplies, etc.). There should be 2 data series. Include the following in the chart: a) Chart Title as "Difference Comparison". b) Data Labels under each expense category/column. 6) Generate a report to your supervisor indicating your findings. Include the following: a) Introduction explaining why you have decided to perform this analysis. b) Methodology utilized. c) Findings of your analysis. Develop a single table that shows all calculations. Provide a narrative of the significant differences between the budget and EAC. d) Recommendations. Suggest a course of action that should be taken in order to ensure that the established budget is not exceeded. Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec Salaries 15,520 11,987 13,744 15,521 14,555 13,645 1,256 13,764 753 14,542 994 Supplie S Salaries Supplies Phone Utilities Travel 968 1,546 695 962 789 Annual Budget Information: Amount 160,000 12,000 3,200 6,000 15,000 Training Rent 8,000 38,000 Insurance 2,200 Advertising 12,000 Phone 280 280 280 485 280 280 280 280 Utilities Travel Training 654 798 457 857 864 648 732 312 Monthly rent for the office is $3,125 Insurance is $195 (per month) for the first 4 months and goes up to $225 in May 62.4 4.7 1.2 2.3 5.9 684 1,524 495 985 534 3,128 490 1,256 515 2,578 652 2,186 732 1,893 829 2,458 3.1 14.8 0.9 4.7 Advertisin 9 856 979 675 612 978 789 777 926
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Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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