1.BizOps Enterprises has product sales as its main source of revenue with a typical income of $10-15 million per month (approximately 95 per cent of revenue). Its main expenses are wages and stock purchases, with a typical range of $8-9 million per month. All other expense items equate to approximately $1 million per month. The budgetary monitoring process attempts to track 20 income categories and up to 200 expense categories. Department managers claim that it takes a full working day per month to respond to all of the variances in their budget report.

Upon analysis, you note that most of the significant monthly variations in total dollar amounts occur in casual wages, stock purchases and sales. The other revenue and expense items can show significant percentage variations, but in real dollar amounts they are relatively small (for example, a change from $100 to $200 is a 100 per cent variation).

Prepare a one-page submission to the Board with a proposal for department managers to focus only on responding to variances in budget items that have the greatest impact and risk to the organisation. The proposal should contain mock-up examples of typical monthly revenue and expenses (actual versus budget) for one retail outlet (using the assumption that there are 150 outlets in total) that support your proposal.