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Consider the following 2016 data for Newark Hospital (in millions of dollars) Simple Budget Flexible Budget Actual Results Revenues $4.7 $4.8 $4.5 Costs 4.1 4.1
Consider the following 2016 data for Newark Hospital (in millions of dollars)
Simple Budget | Flexible Budget | Actual Results | |
Revenues | $4.7 | $4.8 | $4.5 |
Costs | 4.1 | 4.1 | 4.2 |
Profit | 0.6 | 0.7 | 0.3 |
a. Calculate and interpret the two profit variances
b. Calculate and interpret the two revenue variances.
c. Calculate and interpret the two cost variances.
d. how are the variances related
Answer a-d.
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