Riskco - revenue and expense budget - August XX
Revenue
Risk consultancy revenue	$ 13,800.00
Expences
Marketing Expense	$ 1,351.48
Office cleaning	$ 550.00
Payroll expenses	$ 32,120.01
Telephone expense	$ 581.10
Subscriptions	$ 490.91
IT expense	$ 6,400.00
Insurance expense	$ 2,700.00
Rental expense	$ 4,364.00
Stationary	$ 250.00
Staff amenities	$ 68.30
Total Expenses	$ 48,875.80
Budgeted Profit or (Loss)	$ 35,075.80

Task 5

Variance analysis computation

Using the budget revenue/expense report you produced in task 4 you are required is to perform a variance analysis between the August expense and revenue budget and actual results for the month of August XX. You may use spreadsheet software or other appropriate software to complete this task.

Riskco profit and loss for the month of August XX

Account
Risk consultancy revenue	$15,800.00
Total revenue	$15,800.00
Marketing expenses	$1,600.75
Office cleaning	$550.00
Wages/super guarantee/PAYG	$33,120.01
Telephone expense	$577.10
Subscriptions	$490.91
IT expenses	$6,500.00
Insurance expense	$2,700.00
Rental expense	$4,254.90
Stationary	$211.00
Staff amenities	$150.30
Total expenses	$50,154.97
Net loss before tax	-$34,354.97

Please use this example as a guide for how to approach this question:

Example:

Company A had the following variances between the budget and the actual results for the following:

Account	Budget	Actual	Variance	%	Favourable/Unfavourable
Sales	$15,000.00	$12,000.00	-$3,000.00	-20%	Unfavourable
Wages and salaries expense	$5,000.00	$4,500.00	$500.00	10%	Favourable

August variance analysis meeting (If you could write a dialogue for me, that would be great)

Find two friends, family members or mentors who can help you with this task. You are Bill the Office Manager of Riskco. Your task is to present the variance analysis you have prepared in task 5 in a short 5-minute meeting. Your meeting will be with Bob the CEO of Riskco and Jill who is a potential private investor in Riskco. The CEO is hoping that Jill may inject extra capital in Riskco so he has invited her to the meeting. Jill mentioned that she wants to attend the variance meeting to obtain more information about her potential investment in Riskco.

In the meeting you must:

• Briefly present and explain the August XX Riskco variance analysis report
• Ask clarifying questions to ensure your audience understands your report
• Demonstrate active listening and build rapport with your internal and external stakeholder

The oral submission is reviewed using the following checklist.
Performance descriptor	Not applicable	Satisfactory	Not satisfactory	Comments
One 5-minute audio file of budget meeting with two other persons playing the role of CEO of Riskco and a potential private investor
Demonstrate active listening in the meeting including listening and questioning with the internal and external stakeholder