{"id":24298,"date":"2023-10-26T11:10:14","date_gmt":"2023-10-26T10:10:14","guid":{"rendered":"https:\/\/thefinancialeducation.co.uk\/?p=24298"},"modified":"2026-07-02T14:17:32","modified_gmt":"2026-07-02T13:17:32","slug":"408af-session-9","status":"publish","type":"post","link":"https:\/\/thefinancialeducation.co.uk\/index.php\/2023\/10\/26\/408af-session-9\/","title":{"rendered":"408AF: Session 9 (Thursday)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Variance analysis<\/h2>\n\n\n<style>.kt-accordion-id24298_13be46-88 .kt-accordion-inner-wrap{column-gap:var(--global-kb-gap-md, 2rem);row-gap:10px;}.kt-accordion-id24298_13be46-88 .kt-accordion-panel-inner{border-top:0px solid transparent;border-right:0px solid transparent;border-bottom:0px solid transparent;border-left:0px solid transparent;background:#ffffff;padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-right:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);padding-left:var(--global-kb-spacing-sm, 1.5rem);}.kt-accordion-id24298_13be46-88 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header{border-top:0px solid #f2f2f2;border-right:0px solid #f2f2f2;border-bottom:0px solid #f2f2f2;border-left:0px solid #f2f2f2;border-top-left-radius:6px;border-top-right-radius:6px;border-bottom-right-radius:6px;border-bottom-left-radius:6px;background:#f2f2f2;color:#555555;padding-top:14px;padding-right:16px;padding-bottom:14px;padding-left:16px;}.kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle )  > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle )  > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap .kt-blocks-accordion-icon-trigger:before{background:#555555;}.kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-icon-trigger{background:#555555;}.kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-icon-trigger:before{background:#f2f2f2;}.kt-accordion-id24298_13be46-88 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header:hover, \n\t\t\t\tbody:not(.hide-focus-outline) .kt-accordion-id24298_13be46-88 .kt-blocks-accordion-header:focus-visible{color:#444444;background:#eeeeee;border-top-color:#eeeeee;border-top-style:solid;border-right-color:#eeeeee;border-right-style:solid;border-bottom-color:#eeeeee;border-bottom-style:solid;border-left-color:#eeeeee;border-left-style:solid;}.kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle ) .kt-accordion-header-wrap .kt-blocks-accordion-header:hover .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle ) .kt-accordion-header-wrap .kt-blocks-accordion-header:hover .kt-blocks-accordion-icon-trigger:before, body:not(.hide-focus-outline) .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle ) .kt-blocks-accordion--visible .kt-blocks-accordion-icon-trigger:after, body:not(.hide-focus-outline) .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle ) .kt-blocks-accordion-header:focus-visible .kt-blocks-accordion-icon-trigger:before{background:#444444;}.kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:hover .kt-blocks-accordion-icon-trigger, body:not(.hide-focus-outline) .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible .kt-blocks-accordion-icon-trigger{background:#444444;}.kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:hover .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:hover .kt-blocks-accordion-icon-trigger:before, body:not(.hide-focus-outline) .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible .kt-blocks-accordion-icon-trigger:after, body:not(.hide-focus-outline) .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible .kt-blocks-accordion-icon-trigger:before{background:#eeeeee;}.kt-accordion-id24298_13be46-88 .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible,\n\t\t\t\t.kt-accordion-id24298_13be46-88 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active{color:#ffffff;background:#f3690e;border-top-color:#f3690e;border-top-style:solid;border-right-color:#f3690e;border-right-style:solid;border-bottom-color:#f3690e;border-bottom-style:solid;border-left-color:#f3690e;border-left-style:solid;}.kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle )  > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basiccircle ):not( .kt-accodion-icon-style-xclosecircle ):not( .kt-accodion-icon-style-arrowcircle )  > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:before{background:#ffffff;}.kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger{background:#ffffff;}.kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:after, .kt-accordion-id24298_13be46-88:not( .kt-accodion-icon-style-basic ):not( .kt-accodion-icon-style-xclose ):not( .kt-accodion-icon-style-arrow ) .kt-blocks-accordion-header.kt-accordion-panel-active .kt-blocks-accordion-icon-trigger:before{background:#f3690e;}@media all and (max-width: 1024px){.kt-accordion-id24298_13be46-88 .kt-accordion-panel-inner{border-top:0px solid transparent;border-right:0px solid transparent;border-bottom:0px solid transparent;border-left:0px solid transparent;}}@media all and (max-width: 1024px){.kt-accordion-id24298_13be46-88 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header{border-top:0px solid #f2f2f2;border-right:0px solid #f2f2f2;border-bottom:0px solid #f2f2f2;border-left:0px solid #f2f2f2;}}@media all and (max-width: 1024px){.kt-accordion-id24298_13be46-88 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header:hover, \n\t\t\t\tbody:not(.hide-focus-outline) .kt-accordion-id24298_13be46-88 .kt-blocks-accordion-header:focus-visible{border-top-color:#eeeeee;border-top-style:solid;border-right-color:#eeeeee;border-right-style:solid;border-bottom-color:#eeeeee;border-bottom-style:solid;border-left-color:#eeeeee;border-left-style:solid;}}@media all and (max-width: 1024px){.kt-accordion-id24298_13be46-88 .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible,\n\t\t\t\t.kt-accordion-id24298_13be46-88 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active{border-top-color:#f3690e;border-top-style:solid;border-right-color:#f3690e;border-right-style:solid;border-bottom-color:#f3690e;border-bottom-style:solid;border-left-color:#f3690e;border-left-style:solid;}}@media all and (max-width: 767px){.kt-accordion-id24298_13be46-88 .kt-accordion-inner-wrap{display:block;}.kt-accordion-id24298_13be46-88 .kt-accordion-inner-wrap .kt-accordion-pane:not(:first-child){margin-top:10px;}.kt-accordion-id24298_13be46-88 .kt-accordion-panel-inner{border-top:0px solid transparent;border-right:0px solid transparent;border-bottom:0px solid transparent;border-left:0px solid transparent;}.kt-accordion-id24298_13be46-88 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header{border-top:0px solid #f2f2f2;border-right:0px solid #f2f2f2;border-bottom:0px solid #f2f2f2;border-left:0px solid #f2f2f2;}.kt-accordion-id24298_13be46-88 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header:hover, \n\t\t\t\tbody:not(.hide-focus-outline) .kt-accordion-id24298_13be46-88 .kt-blocks-accordion-header:focus-visible{border-top-color:#eeeeee;border-top-style:solid;border-right-color:#eeeeee;border-right-style:solid;border-bottom-color:#eeeeee;border-bottom-style:solid;border-left-color:#eeeeee;border-left-style:solid;}.kt-accordion-id24298_13be46-88 .kt-accordion-header-wrap .kt-blocks-accordion-header:focus-visible,\n\t\t\t\t.kt-accordion-id24298_13be46-88 > .kt-accordion-inner-wrap > .wp-block-kadence-pane > .kt-accordion-header-wrap > .kt-blocks-accordion-header.kt-accordion-panel-active{border-top-color:#f3690e;border-top-style:solid;border-right-color:#f3690e;border-right-style:solid;border-bottom-color:#f3690e;border-bottom-style:solid;border-left-color:#f3690e;border-left-style:solid;}}<\/style>\n<div class=\"wp-block-kadence-accordion alignnone\"><div class=\"kt-accordion-wrap kt-accordion-id24298_13be46-88 kt-accordion-has-10-panes kt-active-pane-0 kt-accordion-block kt-pane-header-alignment-left kt-accodion-icon-style-basic kt-accodion-icon-side-right\" style=\"max-width:2000px\"><div class=\"kt-accordion-inner-wrap\" data-allow-multiple-open=\"false\" data-start-open=\"0\">\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-1 kt-pane24298_22f23f-b0\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\">Aims &amp; Objectives<\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">By the end of this session you will be able to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Compare budgeted cash flows and actual cash flows<\/li>\n\n\n\n<li>Determine variance analysis<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-2 kt-pane24298_21dc79-24\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\">Introduction<\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">In this session you will be looking at variance analysis. <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The subject is about comparing the cash budget data with the actual data to determine the amount of differences that exist.<\/li>\n\n\n\n<li>The process acts as a monitoring and controlling tool to inform management of any major issues. \n<ul class=\"wp-block-list\">\n<li>If there are major variances (differences) the management board will want to know the causes by requesting the Accountant to investigate and to rectify those issues within their control. <\/li>\n\n\n\n<li>For example, if material prices are high, then change the supplier to obtain a better deal on prices.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>However, there are items that the organisation will not be able to control such as interest rates and exchange rates. \n<ul class=\"wp-block-list\">\n<li>These are external factors outside the control of the organisation&#8217;s accountant.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-3 kt-pane24298_f2a356-75\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Sources of cash<\/strong>: <strong>Group Discussion<\/strong> <strong>(20 minutes)<\/strong><\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\"><style>.kt-tabs-id24298_5e7ac7-90 > .kt-tabs-content-wrap > .wp-block-kadence-tab{border-top:3px solid #0a6689;border-right:0px solid #0a6689;border-bottom:0px solid #0a6689;border-left:0px solid #0a6689;border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-right:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);padding-left:var(--global-kb-spacing-sm, 1.5rem);background:var(--global-palette9, #ffffff);}.wp-block-kadence-tabs .kt-tabs-id24298_5e7ac7-90 > .kt-tabs-title-list li{margin-top:0px;margin-right:8px;margin-bottom:0px;margin-left:0px;}.wp-block-kadence-tabs .kt-tabs-id24298_5e7ac7-90 > .kt-tabs-title-list li:last-child{margin-right:0px;}.wp-block-kadence-tabs .kt-tabs-id24298_5e7ac7-90 > .kt-tabs-title-list li .kt-tab-title, .wp-block-kadence-tabs .kt-tabs-id24298_5e7ac7-90 > .kt-tabs-content-wrap > .kt-tabs-accordion-title .kt-tab-title{line-height:1.4em;font-weight:bold;font-style:normal;border-top-width:0px;border-right-width:0px;border-bottom-width:0px;border-left-width:0px;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;padding-top:8px;padding-right:20px;padding-bottom:8px;padding-left:20px;border-color:var(--global-palette7, #eeeeee);color:var(--global-palette4, #2D3748);background:#e0cf0d;}.wp-block-kadence-tabs .kt-tabs-id24298_5e7ac7-90 > .kt-tabs-content-wrap > .kt-tabs-accordion-title .kt-tab-title{margin-top:0px;margin-right:8px;margin-bottom:0px;margin-left:0px;}.wp-block-kadence-tabs .kt-tabs-id24298_5e7ac7-90 > .kt-tabs-title-list li .kt-tab-title:hover, .wp-block-kadence-tabs .kt-tabs-id24298_5e7ac7-90 > .kt-tabs-content-wrap > .kt-tabs-accordion-title .kt-tab-title:hover{border-color:var(--global-palette7, #eeeeee);color:var(--global-palette3, #1A202C);background:var(--global-palette8, #F7FAFC);}.wp-block-kadence-tabs .kt-tabs-id24298_5e7ac7-90 > .kt-tabs-title-list li.kt-tab-title-active .kt-tab-title, .wp-block-kadence-tabs .kt-tabs-id24298_5e7ac7-90 > .kt-tabs-content-wrap > .kt-tabs-accordion-title.kt-tab-title-active .kt-tab-title{border-color:var(--global-palette7, #eeeeee);color:#ffffff;background:#0a6689;}.wp-block-kadence-tabs .kt-tabs-id24298_5e7ac7-90{max-width:2000px;}@media all and (max-width: 1024px){.kt-tabs-id24298_5e7ac7-90 > .kt-tabs-content-wrap > .wp-block-kadence-tab{border-top:3px solid #0a6689;border-right:0px solid #0a6689;border-bottom:0px solid #0a6689;border-left:0px solid #0a6689;}}@media all and (max-width: 767px){.kt-tabs-id24298_5e7ac7-90 > .kt-tabs-content-wrap > .wp-block-kadence-tab{border-top:3px solid #0a6689;border-right:0px solid #0a6689;border-bottom:0px solid #0a6689;border-left:0px solid #0a6689;}}<\/style>\n<div class=\"wp-block-kadence-tabs alignnone\"><div class=\"kt-tabs-wrap kt-tabs-id24298_5e7ac7-90 kt-tabs-has-2-tabs kt-active-tab-1 kt-tabs-layout-tabs kt-tabs-tablet-layout-inherit kt-tabs-mobile-layout-inherit kt-tab-alignment-left \"><ul class=\"kt-tabs-title-list\"><li id=\"tab-task\" class=\"kt-title-item kt-title-item-1 kt-tabs-svg-show-always kt-tabs-icon-side-right kt-tab-title-active\"><a href=\"#tab-task\" data-tab=\"1\" class=\"kt-tab-title kt-tab-title-1 \"><span class=\"kt-title-text\">Task<\/span><\/a><\/li><li id=\"tab-solution\" class=\"kt-title-item kt-title-item-2 kt-tabs-svg-show-always kt-tabs-icon-side-right kt-tab-title-inactive\"><a href=\"#tab-solution\" data-tab=\"2\" class=\"kt-tab-title kt-tab-title-2 \"><span class=\"kt-title-text\">Solution<\/span><\/a><\/li><\/ul><div class=\"kt-tabs-content-wrap\">\n<div class=\"wp-block-kadence-tab kt-tab-inner-content kt-inner-tab-1 kt-inner-tab24298_b5fdcb-68\"><div class=\"kt-tab-inner-content-inner\">\n<p class=\"wp-block-paragraph\"><strong>Prepare a short Power Point to present your answer for the task below:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The cash budget is important to business entities but it is also useful for other organisations. Carry out research to find out the sources of cash that can be found in government and charitable organisations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Have a look at the postings made by your colleagues to the discussion forum and comment on at least two other postings.<br>Some of the things you may wish to think about when you are studying other postings include:<br>\u2022 Do any of your colleagues share the same understanding of the topic?<br>\u2022 What do you think of the sources of cash they have selected?<br>\u2022 How do they compare to your sources of cash you selected?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Padlet password: 12345<\/p>\n\n\n<div class=\"padlet-embed\" style=\"border:1px solid rgba(0,0,0,0.1);border-radius:2px;box-sizing:border-box;overflow:hidden;position:relative;width:100%;background:#F4F4F4\">\n<p style=\"padding:0;margin:0\"><iframe src=\"https:\/\/coventryunionline.padlet.org\/embed\/e61cfkud24sple6e\" frameborder=\"0\" allow=\"camera;microphone;geolocation\" style=\"width:100%;height:608px;display:block;padding:0;margin:0\"><\/iframe><\/p>\n<div style=\"display:flex;align-items:center;justify-content:end;margin:0;height:28px\"><a href=\"https:\/\/padlet.com?ref=embed\" style=\"display:block;flex-grow:0;margin:0;border:none;padding:0;text-decoration:none\" target=\"_blank\" rel=\"noopener\"><\/p>\n<div style=\"display:flex;align-items:center;\"><img data-opt-id=1441106896  fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/padlet.net\/embeds\/made_with_padlet_2022.png\" width=\"114\" height=\"28\" style=\"padding:0;margin:0;background:0 0;border:none;box-shadow:none\" alt=\"Made with Padlet\"><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-tab kt-tab-inner-content kt-inner-tab-2 kt-inner-tab24298_e4f667-21\"><div class=\"kt-tab-inner-content-inner\">\n<figure class=\"wp-block-image size-large\"><img data-opt-id=937701980  fetchpriority=\"high\" decoding=\"async\" width=\"733\" height=\"1024\" src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:733\/h:1024\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-55.png\" alt=\"\" class=\"wp-image-38192\" srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:733\/h:1024\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-55.png 733w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:215\/h:300\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-55.png 215w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:768\/h:1073\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-55.png 768w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:193\/h:270\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-55.png 193w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:773\/h:1080\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-55.png 1059w\" sizes=\"(max-width: 733px) 100vw, 733px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<\/div><\/div>\n<\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><br><\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-4 kt-pane24298_ad5c9c-6f\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Variance analysis \u2013 An introduction<\/strong><\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\"><abbr class='c2c-text-hover' title='the purchase price, including the additional cost of bringing the product or service to its present location or condition, such as delivery charges. e.g.'>Cost<\/abbr> variance analysis is a control system that is designed to detect and correct variances from expected levels. It is comprised of the following steps:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-opt-id=1827593373  fetchpriority=\"high\" decoding=\"async\" width=\"441\" height=\"441\" src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-27.png\" alt=\"\" class=\"wp-image-24309\" srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:441\/h:441\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-27.png 441w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:300\/h:300\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-27.png 300w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:150\/h:150\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-27.png 150w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:270\/h:270\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-27.png 270w\" sizes=\"(max-width: 441px) 100vw, 441px\" \/><\/figure>\n\n\n<div class=\"wp-block-ub-divider ub_divider ub-divider-orientation-horizontal\" id=\"ub_divider_e3255639-a45c-4f3f-aaa7-bdd1b882c664\"><div class=\"ub_divider_wrapper\" style=\"position: relative; margin-bottom: 2px; width: 100%; height: 2px; \" data-divider-alignment=\"center\"><div class=\"ub_divider_line\" style=\"border-top: 2px solid #ccc; margin-top: 2px; \"><\/div><\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\">The simplest form of <abbr class='c2c-text-hover' title='the purchase price, including the additional cost of bringing the product or service to its present location or condition, such as delivery charges. e.g.'>cost<\/abbr> variance analysis is to subtract the budgeted or standard <abbr class='c2c-text-hover' title='the purchase price, including the additional cost of bringing the product or service to its present location or condition, such as delivery charges. e.g.'>cost<\/abbr> from the actual incurred <abbr class='c2c-text-hover' title='the purchase price, including the additional cost of bringing the product or service to its present location or condition, such as delivery charges. e.g.'>cost<\/abbr>, and reporting on the reasons for the difference. A more refined approach is to split this difference into two elements:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img data-opt-id=428932974  data-opt-src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-28.png\"  loading=\"lazy\" decoding=\"async\" width=\"414\" height=\"414\" src=\"data:image/svg+xml,%3Csvg%20viewBox%3D%220%200%20100%%20100%%22%20width%3D%22100%%22%20height%3D%22100%%22%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%3E%3Crect%20width%3D%22100%%22%20height%3D%22100%%22%20fill%3D%22transparent%22%2F%3E%3C%2Fsvg%3E\" alt=\"\" class=\"wp-image-24311\" style=\"width:799px;height:auto\" old-srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:414\/h:414\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-28.png 414w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:300\/h:300\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-28.png 300w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:150\/h:150\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-28.png 150w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:270\/h:270\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-28.png 270w\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>A standard costing system consists of two elements<\/em> <\/p>\n\n\n<div class=\"wp-block-ub-divider ub_divider ub-divider-orientation-horizontal\" id=\"ub_divider_89db3af4-a801-4b9b-bd57-d35a5cb117c2\"><div class=\"ub_divider_wrapper\" style=\"position: relative; margin-bottom: 2px; width: 100%; height: 2px; \" data-divider-alignment=\"center\"><div class=\"ub_divider_line\" style=\"border-top: 2px solid #ccc; margin-top: 2px; \"><\/div><\/div><\/div>\n\n\n<ul class=\"wp-block-list\">\n<li>For example\n<ul class=\"wp-block-list\">\n<li>A company has an unfavourable variance in its <abbr class='c2c-text-hover' title='the purchase price, including the additional cost of bringing the product or service to its present location or condition, such as delivery charges. e.g.'>cost<\/abbr> of goods sold of \u00a380,000. <\/li>\n\n\n\n<li>A detailed <abbr class='c2c-text-hover' title='the purchase price, including the additional cost of bringing the product or service to its present location or condition, such as delivery charges. e.g.'>cost<\/abbr> variance analysis reveals that the company sold several hundred more units than it expected, and the <abbr class='c2c-text-hover' title='the purchase price, including the additional cost of bringing the product or service to its present location or condition, such as delivery charges. e.g.'>cost<\/abbr> of those additional units comprised \u00a370,000 of the variance. <\/li>\n\n\n\n<li>This was hardly indicative of poor performance, since it <abbr class='c2c-text-hover' title='if something is implied, it is understood to be true or to exist, although it is not stated directly or in a legal agreement.'>implied<\/abbr> that the company was selling more units. <\/li>\n\n\n\n<li>Only the remaining \u00a310,000 of the unfavourable variance was due to unusually high prices, which could then be investigated in detail. <\/li>\n\n\n\n<li>Thus, it frequently makes sense to divide <abbr class='c2c-text-hover' title='the purchase price, including the additional cost of bringing the product or service to its present location or condition, such as delivery charges. e.g.'>cost<\/abbr> variance analysis into price and volume variances, thereby gaining better insights into the costs incurred.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-5 kt-pane24298_12a516-3a\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Variance analysis \u2013 Worked example<\/strong><\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\"><style>.kt-tabs-id24298_7262e7-8b > .kt-tabs-content-wrap > .wp-block-kadence-tab{border-top:3px solid #0a6689;border-right:0px solid #0a6689;border-bottom:0px solid #0a6689;border-left:0px solid #0a6689;border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-right:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);padding-left:var(--global-kb-spacing-sm, 1.5rem);background:var(--global-palette9, #ffffff);}.wp-block-kadence-tabs .kt-tabs-id24298_7262e7-8b > .kt-tabs-title-list li{margin-top:0px;margin-right:8px;margin-bottom:0px;margin-left:0px;}.wp-block-kadence-tabs .kt-tabs-id24298_7262e7-8b > .kt-tabs-title-list li:last-child{margin-right:0px;}.wp-block-kadence-tabs .kt-tabs-id24298_7262e7-8b > .kt-tabs-title-list li .kt-tab-title, .wp-block-kadence-tabs .kt-tabs-id24298_7262e7-8b > .kt-tabs-content-wrap > .kt-tabs-accordion-title .kt-tab-title{line-height:1.4em;font-weight:regular;font-style:normal;border-top-width:0px;border-right-width:0px;border-bottom-width:0px;border-left-width:0px;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;padding-top:8px;padding-right:20px;padding-bottom:8px;padding-left:20px;border-color:var(--global-palette7, #eeeeee);color:var(--global-palette4, #2D3748);background:var(--global-palette7, #eeeeee);}.wp-block-kadence-tabs .kt-tabs-id24298_7262e7-8b > .kt-tabs-content-wrap > .kt-tabs-accordion-title .kt-tab-title{margin-top:0px;margin-right:8px;margin-bottom:0px;margin-left:0px;}.wp-block-kadence-tabs .kt-tabs-id24298_7262e7-8b > .kt-tabs-title-list li .kt-tab-title:hover, .wp-block-kadence-tabs .kt-tabs-id24298_7262e7-8b > .kt-tabs-content-wrap > .kt-tabs-accordion-title .kt-tab-title:hover{border-color:var(--global-palette7, #eeeeee);color:var(--global-palette3, #1A202C);background:var(--global-palette8, #F7FAFC);}.wp-block-kadence-tabs .kt-tabs-id24298_7262e7-8b > .kt-tabs-title-list li.kt-tab-title-active .kt-tab-title, .wp-block-kadence-tabs .kt-tabs-id24298_7262e7-8b > .kt-tabs-content-wrap > .kt-tabs-accordion-title.kt-tab-title-active .kt-tab-title{border-color:var(--global-palette7, #eeeeee);color:#ffffff;background:#0a6689;}@media all and (max-width: 1024px){.kt-tabs-id24298_7262e7-8b > .kt-tabs-content-wrap > .wp-block-kadence-tab{border-top:3px solid #0a6689;border-right:0px solid #0a6689;border-bottom:0px solid #0a6689;border-left:0px solid #0a6689;}}@media all and (max-width: 767px){.kt-tabs-id24298_7262e7-8b > .kt-tabs-content-wrap > .wp-block-kadence-tab{border-top:3px solid #0a6689;border-right:0px solid #0a6689;border-bottom:0px solid #0a6689;border-left:0px solid #0a6689;}}<\/style>\n<div class=\"wp-block-kadence-tabs alignnone\"><div class=\"kt-tabs-wrap kt-tabs-id24298_7262e7-8b kt-tabs-has-3-tabs kt-active-tab-1 kt-tabs-layout-tabs kt-tabs-tablet-layout-inherit kt-tabs-mobile-layout-inherit kt-tab-alignment-left \"><ul class=\"kt-tabs-title-list\"><li id=\"tab-strongintroductionstrong\" class=\"kt-title-item kt-title-item-1 kt-tabs-svg-show-always kt-tabs-icon-side-right kt-tab-title-active\"><a href=\"#tab-strongintroductionstrong\" data-tab=\"1\" class=\"kt-tab-title kt-tab-title-1 \"><span class=\"kt-title-text\"><strong>Introduction<\/strong><\/span><\/a><\/li><li id=\"tab-strongquestionstrong\" class=\"kt-title-item kt-title-item-2 kt-tabs-svg-show-always kt-tabs-icon-side-right kt-tab-title-inactive\"><a href=\"#tab-strongquestionstrong\" data-tab=\"2\" class=\"kt-tab-title kt-tab-title-2 \"><span class=\"kt-title-text\"><strong>Question<\/strong><\/span><\/a><\/li><li id=\"tab-strongsolutionstrong\" class=\"kt-title-item kt-title-item-3 kt-tabs-svg-show-always kt-tabs-icon-side-right kt-tab-title-inactive\"><a href=\"#tab-strongsolutionstrong\" data-tab=\"3\" class=\"kt-tab-title kt-tab-title-3 \"><span class=\"kt-title-text\"><strong>Solution<\/strong><\/span><\/a><\/li><\/ul><div class=\"kt-tabs-content-wrap\">\n<div class=\"wp-block-kadence-tab kt-tab-inner-content kt-inner-tab-1 kt-inner-tab24298_add406-86\"><div class=\"kt-tab-inner-content-inner\">\n<p class=\"wp-block-paragraph\"><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The following worked example will help you to see how variance analysis is used in a practical situation via worked example.&nbsp; <\/li>\n\n\n\n<li>In addition, the demonstration allows you to familiarise yourself with how questions will need to be answered.&nbsp; <\/li>\n\n\n\n<li>Once you have studied the worked example please attempt the accompanying activity.<\/li>\n\n\n\n<li>Before we start let us just refresh our understanding of variance.&nbsp; <\/li>\n\n\n\n<li><mark style=\"background-color:#00387d\" class=\"has-inline-color has-white-color\"><strong>In budgeting, a variance is the difference between a budgeted <abbr class='c2c-text-hover' title='the purchase price, including the additional cost of bringing the product or service to its present location or condition, such as delivery charges. e.g.'>cost<\/abbr> and the actual amount incurred. It is worth noting that variances can be calculated for both costs and revenues<\/strong>.&nbsp;&nbsp;<\/mark><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-white-color\">&nbsp;&nbsp;<\/mark>&nbsp; &nbsp;<\/li>\n\n\n\n<li>A standard costing system consists of the following four elements:<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img data-opt-id=573088552  data-opt-src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-29.png\"  loading=\"lazy\" decoding=\"async\" width=\"427\" height=\"418\" src=\"data:image/svg+xml,%3Csvg%20viewBox%3D%220%200%20100%%20100%%22%20width%3D%22100%%22%20height%3D%22100%%22%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%3E%3Crect%20width%3D%22100%%22%20height%3D%22100%%22%20fill%3D%22transparent%22%2F%3E%3C%2Fsvg%3E\" alt=\"\" class=\"wp-image-24322\" style=\"width:777px;height:auto\" old-srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:427\/h:418\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-29.png 427w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:300\/h:294\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-29.png 300w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:276\/h:270\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-29.png 276w\" \/><\/figure>\n\n\n<div class=\"wp-block-ub-divider ub_divider ub-divider-orientation-horizontal\" id=\"ub_divider_38f57698-fd4b-48f8-87dc-0f0b987d031c\"><div class=\"ub_divider_wrapper\" style=\"position: relative; margin-bottom: 2px; width: 100%; height: 2px; \" data-divider-alignment=\"center\"><div class=\"ub_divider_line\" style=\"border-top: 2px solid #ccc; margin-top: 2px; \"><\/div><\/div><\/div>\n\n\n<figure class=\"wp-block-image size-large\"><img data-opt-id=1384337343  data-opt-src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:1024\/h:674\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-30.png\"  loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"674\" src=\"data:image/svg+xml,%3Csvg%20viewBox%3D%220%200%201024%20674%22%20width%3D%221024%22%20height%3D%22674%22%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%3E%3Crect%20width%3D%221024%22%20height%3D%22674%22%20fill%3D%22transparent%22%2F%3E%3C%2Fsvg%3E\" alt=\"\" class=\"wp-image-24986\" old-srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:1024\/h:674\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-30.png 1024w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:300\/h:197\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-30.png 300w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:768\/h:505\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-30.png 768w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:360\/h:237\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-30.png 360w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:1351\/h:889\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-30.png 1351w\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-tab kt-tab-inner-content kt-inner-tab-2 kt-inner-tab24298_545c21-de\"><div class=\"kt-tab-inner-content-inner\">\n<p class=\"wp-block-paragraph\">Mica Ltd is a small company and you have been asked to prepare its quarterly budget to 30 September 2020.&nbsp; The quarterly budgeted and actual data for Mica Ltd are shown below.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Budgeted&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actual&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Receipts from receivables&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97,268&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 93,084&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cash sales&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16,885&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18,469&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Payments to payables&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -46,880&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -49,270&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cash purchases&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -8,360&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -8,195&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><abbr class='c2c-text-hover' title='is anything that increases one\u2019s ability to generate value. It can be used to increase value across a wide range of categories, such as financial, social, physical, intellectual, etc. In business and economics, the two most common types of capital are financial and human. Capital is the money used to build, run, or grow a business. It can also refer to the net worth (or book value) of a business. Capital most commonly refers to the money used by a business either to meet upcoming expenses, or to invest in new assets and projects.'>Capital<\/abbr> expenditure&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -35,200&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Wages and salaries&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -20,020&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -20,460&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">General expenses&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -26,950 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -24,710 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Net cash flow&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,943&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -26,282&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Opening balance&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,620&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,620&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Closing balance&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16,563&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -21,662&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n\n\n\n<p class=\"has-text-align-left wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><mark style=\"background-color:#ffab1f\" class=\"has-inline-color\">Required<\/mark><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">a) Prepare a reconciliation statement of the budgeted cash closing balance with the actual&nbsp;closing cash balance<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">b) From the options below, choose which action best suits the business to take in order to avoid an overdrawn from the bank:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<ol style=\"list-style-type:lower-roman\" class=\"wp-block-list\">\n<li>Chased customers to settle their accounts earlier&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>Discuss with suppliers an extended <abbr class='c2c-text-hover' title='\u2018place on the right of the account called\u2019. It can mean either increasing or decreasing for different accounts'>credit<\/abbr> term&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>Increased cash sales by offering discounts&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>Postpone the purchase of <abbr class='c2c-text-hover' title='is anything that increases one\u2019s ability to generate value. It can be used to increase value across a wide range of categories, such as financial, social, physical, intellectual, etc. In business and economics, the two most common types of capital are financial and human. Capital is the money used to build, run, or grow a business. It can also refer to the net worth (or book value) of a business. Capital most commonly refers to the money used by a business either to meet upcoming expenses, or to invest in new assets and projects.'>capital<\/abbr> expenditure&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>Negotiate and agree lower wages payments to staff<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">c) Match each cause of variance listed below with one of the following possible courses of action. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Better <abbr class='c2c-text-hover' title='\u2018place on the right of the account called\u2019. It can mean either increasing or decreasing for different accounts'>credit<\/abbr> control&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>Alternative suppliers&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>Reduce overtime working&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>Negotiate early settlement discount&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>Increase the usefulness of the product&nbsp; <\/strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Variances:&nbsp;&nbsp;&nbsp;<\/strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Labour costs have increased&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>Sales volume have decreased&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>Payments to suppliers are being made earlier&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>Customers are taking more days to settle their debts&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n\n\n\n<li>Prices of raw materials have increased&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/livecoventryac-my.sharepoint.com\/:x:\/g\/personal\/ad3624_coventry_ac_uk\/EYmb1HcHXzlFuftO-xtFOD4BmV-PfCmxK8s2T_K163VzfA?e=ENmJ19\">408AF-SESSION 9 &#8211; ACTIVITIES-QUESTIONS.xlsx<\/a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n<p><iframe width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/9uFKAwIa3V0?si=zub_ML-xxp0tuUYP\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-tab kt-tab-inner-content kt-inner-tab-3 kt-inner-tab24298_4275ea-a7\"><div class=\"kt-tab-inner-content-inner\">\n<figure class=\"wp-block-image size-large\"><img data-opt-id=957140355  data-opt-src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:1024\/h:384\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-30.png\"  loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"384\" src=\"data:image/svg+xml,%3Csvg%20viewBox%3D%220%200%201024%20384%22%20width%3D%221024%22%20height%3D%22384%22%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%3E%3Crect%20width%3D%221024%22%20height%3D%22384%22%20fill%3D%22transparent%22%2F%3E%3C%2Fsvg%3E\" alt=\"\" class=\"wp-image-24345\" old-srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:1024\/h:384\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-30.png 1024w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:300\/h:113\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-30.png 300w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:768\/h:288\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-30.png 768w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:1536\/h:576\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-30.png 1536w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:360\/h:135\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-30.png 360w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:1820\/h:683\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-30.png 1820w\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/livecoventryac-my.sharepoint.com\/:x:\/g\/personal\/ad3624_coventry_ac_uk\/EYmb1HcHXzlFuftO-xtFOD4BmV-PfCmxK8s2T_K163VzfA?e=ENmJ19\">408AF-SESSION 9 &#8211; ACTIVITIES-QUESTIONS.xlsx<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<\/div><\/div>\n<\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-6 kt-pane24298_613fda-c2\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Variance analysis<\/strong> &#8211;<strong>  Task 1<\/strong><\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\"><style>.kt-tabs-id24298_b27d68-4b > .kt-tabs-content-wrap > .wp-block-kadence-tab{border-top:3px solid #0a6689;border-right:0px solid #0a6689;border-bottom:0px solid #0a6689;border-left:0px solid #0a6689;border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-right:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);padding-left:var(--global-kb-spacing-sm, 1.5rem);background:var(--global-palette9, #ffffff);}.wp-block-kadence-tabs .kt-tabs-id24298_b27d68-4b > .kt-tabs-title-list li{margin-top:0px;margin-right:8px;margin-bottom:0px;margin-left:0px;}.wp-block-kadence-tabs .kt-tabs-id24298_b27d68-4b > .kt-tabs-title-list li:last-child{margin-right:0px;}.wp-block-kadence-tabs .kt-tabs-id24298_b27d68-4b > .kt-tabs-title-list li .kt-tab-title, .wp-block-kadence-tabs .kt-tabs-id24298_b27d68-4b > .kt-tabs-content-wrap > .kt-tabs-accordion-title .kt-tab-title{line-height:1.4em;font-weight:regular;font-style:normal;border-top-width:0px;border-right-width:0px;border-bottom-width:0px;border-left-width:0px;border-top-left-radius:4px;border-top-right-radius:4px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;padding-top:8px;padding-right:20px;padding-bottom:8px;padding-left:20px;border-color:var(--global-palette7, #eeeeee);color:var(--global-palette4, #2D3748);background:var(--global-palette7, #eeeeee);}.wp-block-kadence-tabs .kt-tabs-id24298_b27d68-4b > .kt-tabs-content-wrap > .kt-tabs-accordion-title .kt-tab-title{margin-top:0px;margin-right:8px;margin-bottom:0px;margin-left:0px;}.wp-block-kadence-tabs .kt-tabs-id24298_b27d68-4b > .kt-tabs-title-list li .kt-tab-title:hover, .wp-block-kadence-tabs .kt-tabs-id24298_b27d68-4b > .kt-tabs-content-wrap > .kt-tabs-accordion-title .kt-tab-title:hover{border-color:var(--global-palette7, #eeeeee);color:var(--global-palette3, #1A202C);background:var(--global-palette8, #F7FAFC);}.wp-block-kadence-tabs .kt-tabs-id24298_b27d68-4b > .kt-tabs-title-list li.kt-tab-title-active .kt-tab-title, .wp-block-kadence-tabs .kt-tabs-id24298_b27d68-4b > .kt-tabs-content-wrap > .kt-tabs-accordion-title.kt-tab-title-active .kt-tab-title{border-color:var(--global-palette7, #eeeeee);color:#ffffff;background:#0a6689;}@media all and (max-width: 1024px){.kt-tabs-id24298_b27d68-4b > .kt-tabs-content-wrap > .wp-block-kadence-tab{border-top:3px solid #0a6689;border-right:0px solid #0a6689;border-bottom:0px solid #0a6689;border-left:0px solid #0a6689;}}@media all and (max-width: 767px){.kt-tabs-id24298_b27d68-4b > .kt-tabs-content-wrap > .wp-block-kadence-tab{border-top:3px solid #0a6689;border-right:0px solid #0a6689;border-bottom:0px solid #0a6689;border-left:0px solid #0a6689;}}<\/style>\n<div class=\"wp-block-kadence-tabs alignnone\"><div class=\"kt-tabs-wrap kt-tabs-id24298_b27d68-4b kt-tabs-has-3-tabs kt-active-tab-1 kt-tabs-layout-tabs kt-tabs-tablet-layout-inherit kt-tabs-mobile-layout-inherit kt-tab-alignment-left \"><ul class=\"kt-tabs-title-list\"><li id=\"tab-strongintroductionstrong\" class=\"kt-title-item kt-title-item-1 kt-tabs-svg-show-always kt-tabs-icon-side-right kt-tab-title-active\"><a href=\"#tab-strongintroductionstrong\" data-tab=\"1\" class=\"kt-tab-title kt-tab-title-1 \"><span class=\"kt-title-text\"><strong>Introduction<\/strong><\/span><\/a><\/li><li id=\"tab-strongquestionstrong\" class=\"kt-title-item kt-title-item-2 kt-tabs-svg-show-always kt-tabs-icon-side-right kt-tab-title-inactive\"><a href=\"#tab-strongquestionstrong\" data-tab=\"2\" class=\"kt-tab-title kt-tab-title-2 \"><span class=\"kt-title-text\"><strong>Question<\/strong><\/span><\/a><\/li><li id=\"tab-strongsolutionstrong\" class=\"kt-title-item kt-title-item-3 kt-tabs-svg-show-always kt-tabs-icon-side-right kt-tab-title-inactive\"><a href=\"#tab-strongsolutionstrong\" data-tab=\"3\" class=\"kt-tab-title kt-tab-title-3 \"><span class=\"kt-title-text\"><strong>Solution<\/strong><\/span><\/a><\/li><\/ul><div class=\"kt-tabs-content-wrap\">\n<div class=\"wp-block-kadence-tab kt-tab-inner-content kt-inner-tab-1 kt-inner-tab24298_3cca57-90\"><div class=\"kt-tab-inner-content-inner\">\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This activity is an important part of your learning and will help you to test your understanding and reinforce what we have just covered.&nbsp;<\/li>\n\n\n\n<li>Use a spreadsheet, (like Microsoft Excel) to attempt the activity and remember to save it with a meaningful name, somewhere you can easily find it.&nbsp; Alternatively, you could do all of your work using a pen and paper, photograph it using your mobile and save it on your computer as an image file.<\/li>\n\n\n\n<li>Once you have completed the question please click on the \u2018Check your answer\u2019 link and compare your answer to the worked solution. This step is very important because it will also enable you to understand where you may have gone wrong and to make sure that you do not make the same mistake again.<\/li>\n\n\n\n<li>If after looking at the solution, you still do not understand where you may have gone wrong, please post a question on the discussion forum for further assistance.&nbsp; Remember, to include your answer with your posting.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Impress Your Boss with this Excel Actual v Target Chart Technique - Quick and Easy!\" width=\"847\" height=\"476\" src=\"https:\/\/www.youtube.com\/embed\/MYi966aU3fY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-tab kt-tab-inner-content kt-inner-tab-2 kt-inner-tab24298_679638-30\"><div class=\"kt-tab-inner-content-inner\">\n<p class=\"wp-block-paragraph\">The quarterly budgeted and actual data for an organisation are shown below.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-opt-id=224899754  data-opt-src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-33.png\"  loading=\"lazy\" decoding=\"async\" width=\"510\" height=\"334\" src=\"data:image/svg+xml,%3Csvg%20viewBox%3D%220%200%20100%%20100%%22%20width%3D%22100%%22%20height%3D%22100%%22%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%3E%3Crect%20width%3D%22100%%22%20height%3D%22100%%22%20fill%3D%22transparent%22%2F%3E%3C%2Fsvg%3E\" alt=\"\" class=\"wp-image-24361\" old-srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:510\/h:334\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-33.png 510w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:300\/h:196\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-33.png 300w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:360\/h:236\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-33.png 360w\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Required<\/strong><\/p>\n\n\n\n<ol style=\"list-style-type:lower-alpha\" class=\"wp-block-list\">\n<li>Prepare a reconciliation statement of the budgeted cash closing balance with the actual closing cash balance<\/li>\n\n\n\n<li>Match each cause of variance listed below with one of the following possible courses of action<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Improve <abbr class='c2c-text-hover' title='\u2018place on the right of the account called\u2019. It can mean either increasing or decreasing for different accounts'>credit<\/abbr> control<\/strong><\/li>\n\n\n\n<li><strong>Ensure available <abbr class='c2c-text-hover' title='\u2018place on the right of the account called\u2019. It can mean either increasing or decreasing for different accounts'>credit<\/abbr> is being taken<\/strong><\/li>\n\n\n\n<li><strong>Increase labour efficiency<\/strong><\/li>\n\n\n\n<li><strong>Change suppliers<\/strong><\/li>\n\n\n\n<li><strong>Provide salespeople with incentives<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Variances:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Labour costs have increased<\/li>\n\n\n\n<li>Sales volume has decreased<\/li>\n\n\n\n<li>Payments to suppliers are being made earlier<\/li>\n\n\n\n<li>Customers are taking more days to settle their debts<\/li>\n\n\n\n<li>Prices of raw materials have increased<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/livecoventryac-my.sharepoint.com\/:x:\/g\/personal\/ad3624_coventry_ac_uk\/EYmb1HcHXzlFuftO-xtFOD4BmV-PfCmxK8s2T_K163VzfA?e=KOTxAI\">https:\/\/livecoventryac-my.sharepoint.com\/:x:\/g\/personal\/ad3624_coventry_ac_uk\/EYmb1HcHXzlFuftO-xtFOD4BmV-PfCmxK8s2T_K163VzfA?e=KOTxAI<\/a><\/p>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-tab kt-tab-inner-content kt-inner-tab-3 kt-inner-tab24298_765202-1c\"><div class=\"kt-tab-inner-content-inner\">\n<figure class=\"wp-block-image size-large\"><img data-opt-id=1793741614  data-opt-src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:1024\/h:384\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-31.png\"  loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"384\" src=\"data:image/svg+xml,%3Csvg%20viewBox%3D%220%200%201024%20384%22%20width%3D%221024%22%20height%3D%22384%22%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%3E%3Crect%20width%3D%221024%22%20height%3D%22384%22%20fill%3D%22transparent%22%2F%3E%3C%2Fsvg%3E\" alt=\"\" class=\"wp-image-24351\" old-srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:1024\/h:384\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-31.png 1024w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:300\/h:113\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-31.png 300w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:768\/h:288\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-31.png 768w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:1536\/h:576\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-31.png 1536w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:360\/h:135\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-31.png 360w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:1820\/h:683\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/10\/image-31.png 1820w\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/livecoventryac-my.sharepoint.com\/:x:\/g\/personal\/ad3624_coventry_ac_uk\/EWHG-aNi6iFCnKJOZQd27q8BMHzsLZp3hNSDShXlJU_mLA?e=1fzdPv\">https:\/\/livecoventryac-my.sharepoint.com\/:x:\/g\/personal\/ad3624_coventry_ac_uk\/EWHG-aNi6iFCnKJOZQd27q8BMHzsLZp3hNSDShXlJU_mLA?e=1fzdPv<\/a><\/p>\n<\/div><\/div>\n<\/div><\/div><\/div>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-10 kt-pane24298_c68480-a2\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Quiz<\/strong><\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.menti.com\/alg8zwr8j6g4\">https:\/\/www.menti.com\/alg8zwr8j6g4<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-opt-id=715873520  data-opt-src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-28.png\"  loading=\"lazy\" decoding=\"async\" width=\"937\" height=\"937\" src=\"data:image/svg+xml,%3Csvg%20viewBox%3D%220%200%20100%%20100%%22%20width%3D%22100%%22%20height%3D%22100%%22%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%3E%3Crect%20width%3D%22100%%22%20height%3D%22100%%22%20fill%3D%22transparent%22%2F%3E%3C%2Fsvg%3E\" alt=\"\" class=\"wp-image-24948\" old-srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:937\/h:937\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-28.png 937w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:300\/h:300\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-28.png 300w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:150\/h:150\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-28.png 150w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:768\/h:768\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-28.png 768w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:270\/h:270\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2023\/11\/image-28.png 270w\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-9 kt-pane24298_b2b4ce-0a\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>End of session feedback<\/strong><\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<p class=\"wp-block-paragraph\">Please complete this short <a rel=\"noreferrer noopener\" href=\"https:\/\/forms.office.com\/e\/fWnECpbWYR\" target=\"_blank\">questionnaire<\/a>.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-pane kt-accordion-pane kt-accordion-pane-7 kt-pane24298_2e390e-bd\"><div class=\"kt-accordion-header-wrap\"><button class=\"kt-blocks-accordion-header kt-acccordion-button-label-show\" type=\"button\"><span class=\"kt-blocks-accordion-title-wrap\"><span class=\"kt-blocks-accordion-title\"><strong>Summary<\/strong><\/span><\/span><span class=\"kt-blocks-accordion-icon-trigger\"><\/span><\/button><\/div><div class=\"kt-accordion-panel kt-accordion-panel-hidden\"><div class=\"kt-accordion-panel-inner\">\n<ul class=\"wp-block-list\">\n<li>In this session you considered another financial tool in variance analysis to enable the accountant to compare the cash budget figures with actual figures to determine whether an <abbr class='c2c-text-hover' title='preventing success or development; harmful; unfavourable'>adverse<\/abbr> or favourable variance has occurred.<\/li>\n\n\n\n<li>This tool is use for monitor and control purposes to enable management to correct items it has control over and to minimise those items such as increase prices through <abbr class='c2c-text-hover' title='Rate at which prices as a whole are increasing.'>inflation<\/abbr> it has no control of.<\/li>\n\n\n\n<li>To reinforce the subject matter, we recommend that you go through the course pages again in preparation for your 2nd assignment.<\/li>\n\n\n\n<li>In the next session, you will consider the working <abbr class='c2c-text-hover' title='is anything that increases one\u2019s ability to generate value. It can be used to increase value across a wide range of categories, such as financial, social, physical, intellectual, etc. In business and economics, the two most common types of capital are financial and human. Capital is the money used to build, run, or grow a business. It can also refer to the net worth (or book value) of a business. Capital most commonly refers to the money used by a business either to meet upcoming expenses, or to invest in new assets and projects.'>capital<\/abbr> cycle.<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n<\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Variance analysis<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[48,1],"tags":[],"class_list":["post-24298","post","type-post","status-publish","format-standard","hentry","category-408af","category-uncategorised"],"featured_image_src":null,"author_info":{"display_name":"admin","author_link":"https:\/\/thefinancialeducation.co.uk\/index.php\/author\/admin\/"},"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"education-hub-thumb":false},"uagb_author_info":{"display_name":"admin","author_link":"https:\/\/thefinancialeducation.co.uk\/index.php\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"Variance analysis","_links":{"self":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/24298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=24298"}],"version-history":[{"count":80,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/24298\/revisions"}],"predecessor-version":[{"id":38202,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/24298\/revisions\/38202"}],"wp:attachment":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=24298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=24298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=24298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}