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    Budget Management Analysis & Benchmarking

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    o Determine specific strategies to manage budgets within forecasts.
    o Compare five to seven expense results with budget expectations, and describe possible reasons for variance.
    o Recommend three benchmarking techniques and identify those that might improve budget accuracy in future forecasts. Justify your choices.

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    https://brainmass.com/business/benchmarking/budget-management-analysis-benchmarking-405869

    Solution Preview

    Please refer to the attached file for the response.

    BUDGET MANAGEMENT ANALYSIS

    To have a basis in illustrating the analysis of variance or difference between budgeted and actual figures, the budget of a sampled (unknown) company was utilized (http://www.smallbusinessnotes.com/business-finances/budgeting-systems.html).

    The following example shows some of the common elements of a Budget.

    Sample Company
    Budget
    January 1, xxxx to December 31, xxxx

    Category Actual Budget Difference

    Inflows
    Net Sales 385,400 300,000 85,400

    Cost of Goods
    Merchandise Inventory, January 1 160,000 160,000 0
    Purchases 120,000 90,000 30,000
    Freight Charges 2,500 2,000 500
    Total Merchandise Handled 282,500 252,000 30,500

    Less Inventory, December 31 100,000 120,000 -20,000

    Cost of Goods Sold 182,500 132,000 50,500

    Gross Profit 202,900 168,000 34,900

    Interest Income 500 700 (200)
    Total Income 202,500 168,700 33,800

    Expenses
    Salaries 68,250 45,000 23,250
    Utilities 5,800 4,500 1,300
    Rent 23,000 23,000 0
    Office Supplies 2,250 3,000 -750
    Insurance 3,900 3,900 0
    Advertising 8,650 9,000 -350
    Telephone 2,700 2,300 400
    Travel and Entertainment 2,550 2,000 550
    Dues & Subscriptions 1,100 1,000 100
    Interest ...

    Solution Summary

    Response contains a 7 page Word document with 790 words that includes a budget table and includes benchmarking technique recommendations.

    $2.19

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