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Hrm 531 Week 4

Decent Essays

BUDGET NOTES: • The annual budget 2011/12 yielded a profit for the company, however, by looking into its quarterly performance it will be noted that the organisation will incur a net loss. • The increase on the Advertising expense has made a major impact on the sales for the 1st quarter based on its appropriation made on the company’s business plan to allocate $200,000 during this period. • It is notable that there in a decrease in the sales during the first quarter. ASSESSMENT TASK-2: MONITOR AND REVIEW Houzit Pty Ltd Variance to Budget Third Quarter Ended September 2010 ACTUAL RESULTS BUDGET-Qx Actual-Qx $ Variance % Variance F or U Revenue Sales $ 4,085,668.00 $ 3,371,200.00 $ 714,468.00 17% U Cost of Goods Sold $ 2,287,974.00 $ 1,955,296.00 $ 332,678.00 15% U Gross Profit $ 1,797,694.00 $ 1,415,904.00 $ 381,790.00 21% U Gross Profit Percentage 44% 42% 2% 5% U Expenses Accounting Fees $ 2,500.00 $ 2,500.00 $ - 0% F Interest Fees $ 21,127.00 $ 28,150.00 $ (7,023.00) -33% U Bank Charges $ 395.00 $ 380.00 $ 15.00 4% F Depreciation $ 42,500.00 $ 42,500.00 $ …show more content…

It is working efficiently within its resources and does not require any additional funds from outside resources for its operations. Its plan to pay off its debt by applying the company’s profits to repay long term debt is a good plan for the company to lessen incidental expenses that relates to it. The company should regularly review its performance and match it against the industry mark in order to ensure that it is functioning at an optimum and effective level which is beneficial to its

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