BTEC Level 3 Unit 3: Business finance Assignment Title: Investigate, plan, improve! Budgets and variance analysis: Activity Item Budgeted figure (m) Actual figure (Em) Variance(m) Sales of Varsity jackets 200 187 Sales of BSB jackets 356 362 Total sales Marketing and promotion 46 55 Administration 32 38 Wages 65 66 Raw materials 89 79 Total costs Profit/loss 1. Suggest possible reasons for the variances identified. Analyse what you think has happened and the knock-on effects this will possibly have on the business in both the short and long term. 2. Would the management team be happy with these results overall? Discuss reasons why. 3. What areas would they want to see improved and how might they go about doing so? 4. Is a favorable variance always a good thing? Consider ways that favorable variances may impact a business negatively. 5. Is an adverse variance always a manager's fault? Discuss possible reasons why this might not be true. BTEC Level 3 Business Unit 3