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Analyze variances in the budgeted and actual performance of ABC Corporation using the following data: Category Budgeted Amount ($) Actual Amount ($) Revenue $100,000 $95,000
- Analyze variances in the budgeted and actual performance of ABC Corporation using the following data:
| Category | Budgeted Amount ($) | Actual Amount ($) |
|---|---|---|
| Revenue | $100,000 | $95,000 |
| Expenses | $80,000 | $85,000 |
Requirements:
- Calculate the variance for revenue and expenses.
- Analyze the variances into favorable and unfavorable components.
- Present the analysis in a detailed table format.
- Discuss potential reasons for budget variances and corrective actions.
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Financial Statement Analysis and Security Valuation
Authors: Stephen Penman
5th edition
78025311, 978-0078025310
