Budgeting at Amazon

• Values:
  • Budgeted Sales: $80,000,000
  • Actual Sales: $75,000,000
  • Budgeted Expenses: $50,000,000
  • Actual Expenses: $48,000,000

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