Budgeting and Variance Analysis at Microsoft

• Values:

• Budgeted Sales: $20,000,000
• Actual Sales: $18,000,000
• Budgeted Variable Costs: $8,000,000
• Actual Variable Costs: $7,500,000
• Requirements:

0. Calculate the sales variance and variable cost variance for Microsoft.
1. Analyze the variances and their impact on Microsoft's financial performance.
2. Discuss the importance of budgeting and variance analysis in strategic decision-making.
3. Recommend actions to improve budgeting and variance control at Microsoft.