Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.31 : (a)(i) actual profit = A - B; (ii) budgeted profit = C - D; (b)(i) revenue variance = A - C or C - A; (ii) cost variance = B - D or D - B; (iii) profit variance = (A - B) - (C - D) = A + D - B - C or (C - D) - (A - B) = C + B - D - A. (c) Favorable conditions will generate more profits according to actual situation, then A > B, C > D, A > C, D > B. The paired values of E - F are : A - B, C - D, A - C, D - B. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.

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