Budgeting and Variance Analysis at Amazon

• Values:

• Budgeted Sales: $10,000,000
• Actual Sales: $9,500,000
• Budgeted Variable Costs: $5,000,000
• Actual Variable Costs: $4,800,000
• Requirements:

0. Calculate the sales variance and variable cost variance for Amazon.
1. Analyze the variances and their impact on Amazon's profitability.
2. Discuss the importance of budgeting and variance analysis in performance evaluation.
3. Recommend actions to improve budgeting accuracy and control at Amazon.