What is the purpose of budget performance reports? How are budget variances calculated? Which budget variances...

What is the purpose of budget performance reports? How are budget variances calculated? Which budget variances are the most important? How will variances help management assess performance?

Expert Solution

Budget performance reports are the specific reporting by the management of the company towards the variances in the performance of the company as per the comparison of the actual against the pre-determined budgets.

The budget figures are put towards the hardest side of comparative statement and variances are calculated by comparison with the actual performance. Actual revenues and gains being higher means positive variance or performance whereas actual being lower to budgeted figures means negative variance or performance.

The revenue and costs variances like sales, material, labor and overheads are the most important variances in various forms of variances because other costs are the almost fixed in nature.

The performance report displays the all financial and non-financial variances of the actual against the budgets. The management assesses the performance through the differences or variances of revenues and costs. The management have to concentrate on the negative variances to optimise the company's performance. The reports also discloses the non-financial issues which cause the budgets to drop outside the allowable ranges of the budgets like inferior resources or shortage of workers in production.

ekkarill92 answered 1 year ago

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Actual Budget Over Budget Under Budget Eastern Region $495,600 $495,600 $0 Central Region 356,800 353,200 $3,600 Western Region (g) (h) (i) $(j) $(k) $(l) $3,140 Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 Department Actual Budget Over Budget Under...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Budget Actual Over Budget Under Budget Eastern Region $530,900 $530,900 $0 Central Region 382,200 378,400 (3,800) Western Region (g) (h) (i) $(j) $(k) $(l) $(3,800) Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 Department Budget Actual Over Budget Under...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Actual Budget Over Budget Under Budget Eastern Region $389,000 $389,000 $0 Central Region 280,100 277,300 $2,800 Western Region (g) (h) (i) $(j) $(k) $(l) $3,120 Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 Department Actual Budget Over Budget Under...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Actual Budget Over Budget Under Budget Eastern Region $409,200 $409,200 $0 Central Region 294,600 291,700 $2,900 Western Region (g) (h) (i) $(j) $(k) $(l) $3,220 Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 Department Actual Budget Over Budget Under...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Actual Budget Over Budget Under Budget Eastern Region $549,800 $549,800 $0 Central Region 395,900 391,900 4,000 Western Region (g) (h) (i) $(j) $(k) $(l) $3,170 Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 Department Actual Budget Over Budget Under...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Delmar Company, a manufacturer...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Delmar Company, a manufacturer of light duty motors, follow: Delmar Company Budget Performance Report—Vice President, Production For the Month Ended June 30 Plant Actual Budget Over Budget (Under) Budget Eastern Region $474,000 $474,000 $0 Central Region 337,900 341,300 (3,400) Western Region (g) (h) (i) $(j) $(k) $(l) $(3,400) Delmar Company Budget Performance Report—Manager, Western Region Plant For the Month Ended June 30 Department Actual Budget Over Budget (Under)...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Budget Actual Over Budget Under Budget Eastern Region $447,400 $447,400 $0 Central Region 322,100 318,900 (3,200) Western Region (g) (h) (i) $(j) $(k) $(l) $(3,200) Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 Department Budget Actual Over Budget Under...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Actual Budget Over Budget Under Budget Eastern Region $460,300 $460,300 $0 Central Region 331,400 328,100 3,300 Western Region (g) (h) (i) $(j) $(k) $(l) $3,200 Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 Department Actual Budget Over Budget Under...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer...

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Budget Actual Over Budget Under Budget Eastern Region $349,500 $349,500 $0 Central Region 251,600 249,100 (2,500) Western Region (g) (h) (i) $(j) $(k) $(l) $(2,500) Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 Department Budget Actual Over Budget Under...

Budget Performance Reports for A decentralized unit in which the department or division manager has responsibility...

Budget Performance Reports for A decentralized unit in which the department or division manager has responsibility for the control of costs incurred and the authority to make decisions that affect these costs.Cost Centers Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Actual Budget Over Budget Under Budget Eastern Region $383,400 $383,400 $0 Central Region 276,000 273,200 $2,800 Western Region...

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What is the purpose of budget performance reports? How are budget variances calculated? Which budget variances...

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