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    Budgeting and planning processes

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    1-Why are planning and budgeting so important to an organizations success?
    2-Briefly describe the planning process. Be sure to include summaries of the strategic, operating and financial plans.
    3-Describe the components of a financial plan.

    Consider the following hospital data:
    Static budget Flexible Budget Actual results
    Revenues $4.7 $4.8 $4.1
    Costs 4.1 4.1 4.2
    Profits 0.6 0.7 0.3

    a- Calculate and interpret the profit variance.
    b- Calculate and interpret the revenue variance.
    c- Calculate and interpret the cost variance.
    d- Calculate and interpret the volume and price variance on the revenue side.
    e- Calculate and interpret the volume and management variances on the cost side.
    f- How are the variances calculated above related?

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    https://brainmass.com/business/finance/budgeting-planning-processes-598312

    Solution Summary

    Details of budgeting and planning processes, different types of plans and calculations for different types of variances are given in a Word attachment.

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