Budgeting and Forecasting at Microsoft

• Values:

• Budgeted Sales: $50,000,000
• Actual Sales: $48,000,000
• Budgeted Variable Costs: $20,000,000
• Actual Variable Costs: $19,500,000
• Requirements:

0. Calculate the sales variance and variable cost variance for Microsoft.
1. Analyze the variances and their impact on financial performance.
2. Discuss how budgeting and forecasting help in planning and control at Microsoft.
3. Recommend actions to improve budget accuracy and performance.