Prepare a Cash Budget for the period 1 November and 31 December 2018
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
The members of Networx Ltd decide to prepare a
December 2018. The following information is available:
Actual Budgeted
August
R
September
R
October
R
November
R
December
R
Sales:
Cash
Credit
194 500
287 300
235 700
350 000
275 000
410 000
250 500
400 400
368 000
697 000
Purchases 510 000 490 000 495 000 520 000 680 000
Salaries & Wages 72 600 72 600 72 600 72 600 72 600
Sundry Expenses 17 800 18 400 22 000 22 600 25 700
Required:
Prepare a Cash Budget for the period 1 November and 31 December 2018
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