For each line of the income statement, identify the differences between

variable and fixed costs.

The aim is to isolate the controllable elements from the uncontrollable

elements that explain these different variances.

Calculate and identify the responsibilities of the various managers if

the actual results are lower than the budgeted results.

For each line of the income statement, the different causes (volume,

yield/efficiency, prices, costs, activity, mix) that led to the variances are evaluated

separately.

Unfavourable price variance and favourable volume variance

Favourable price variance and favourable volume variance

Unfavourable price variance and unfavourable volume variance

Favourable price variance and unfavourable volume variance

$198,000

$30,000

$13,583

$136,364

Budget recalculated on the basis of the volume actually sold or produced

and valued using actual unit prices and actual unit costs

Budget recalculated on the basis of the budgeted volume and valued using

actual unit prices and actual unit costs

Budget recalculated from the budgeted volume and valued using the

budgeted unit price and unit cost assumptions.

Budget recalculated on the basis of the volume

actually sold or produced and valued using budgetary unit price and unit cost

assumptions

Unlike other cost budgets, the staff costs budget for the year (N+1)

cannot be drawn up before the cash flow budget.

The calculation of the personnel costs budget for the

year (N+1) must take into account the previous year's payroll, increased by

recruitments and reduced by departures.

Unlike other cost budgets, the staff costs budget for the year (N+1) can

only be drawn up in the middle of the year once retirements have been

definitively confirmed.

The importance of the organisation's mission and strategic ambitions.

A budget corresponds to the list of objectives that a manager must

achieve in order to obtain variable remuneration; the objectives are defined

unilaterally by the hierarchy and relate to a certain number of action plans

that the manager must implement.

A budget is a twelve-month financial envelope that a manager must not

exceed, on pain of being penalised by his hierarchy or having his objectives

revised upwards.

A budget is a list of action plans that an organisation assigns to each

manager with a view to progress in his or her respective area of

responsibility.

A budget is a formalised one-year plan that determines

both the quantified objectives that a manager must achieve within this

timeframe and the resources available to achieve these objectives.

The inevitable exchanges between sales management, production management

and finance management during the various rounds of the budget process.

Thinking about introducing a new remuneration scheme

for the sales force or thinking about outsourcing part of the production during

the budget process.

The choice of an overall rate of wage increase.

Choosing a new method for depreciating production machinery.

Social, sanctioning, training and steering functions.

Motivational, financial, accounting and logistical functions.

Managerial, steering, knowledge and logistical functions.

Managerial, psychological and financial functions.

The standard cost of a consultant can be calculated by multiplying the

consultant's standard hourly rate by the standard number of hours assumed to

have been worked by the consultant.

The standard cost of raw materials can be calculated by multiplying a

standard unit cost of raw material by a standard number of units consumed.

The standard direct labour cost of a worker can be calculated by

multiplying a standard hourly rate by a standard number of hours.

Standard costs cannot be applied to indirect costs.

The different levels of management involved in the strategic planning

and budgeting processes.

The time perspective.

The link between objectives, action plans and the

resources needed to achieve the objectives.

The importance of the organisation's mission and strategic ambitions.