Budgeting at Alibaba

• Values:
  • Budgeted Sales: $70,000,000
  • Actual Sales: $65,000,000
  • Budgeted Expenses: $40,000,000
  • Actual Expenses: $38,000,000

• Requirements:
  1. Calculate the sales and expense variances for Alibaba.
  2. Analyze the variances and their impact on profitability.
  3. Discuss the importance of budgeting in e-commerce businesses.
  4. Recommend strategies to improve budgeting accuracy.