Scribd Logo
Upload

Welcome to Scribd!

  • Budget Analysis

    Uploaded by

    Kiran Das
    9 views1 page
    Our firm has a five-year budget where fixed costs like rent and salaries have remained constant, though were slightly different as a startup looking to expand. Variable costs fluctuated over five years due to changes in production, spending, inflation and demand. Raw materials, which rose 5% annually each year after the first, were the key cost driver. Travel costs, also increasing 5% per year, were the second largest variable expense as an investment to advertise and differentiate the product. Advertising spending was also increased recently to boost sales and educate customers.

    Original Description:

    Original Title

    BUDGET ANALYSIS

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Our firm has a five-year budget where fixed costs like rent and salaries have remained constant, though were slightly different as a startup looking to expand. Variable costs fluctuated over five years due to changes in production, spending, inflation and demand. Raw materials, which rose 5% annually each year after the first, were the key cost driver. Travel costs, also increasing 5% per year, were the second largest variable expense as an investment to advertise and differentiate the product. Advertising spending was also increased recently to boost sales and educate customers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    9 views1 page

    Budget Analysis

    Uploaded by

    Kiran Das
    Our firm has a five-year budget where fixed costs like rent and salaries have remained constant, though were slightly different as a startup looking to expand. Variable costs fluctuated over five years due to changes in production, spending, inflation and demand. Raw materials, which rose 5% annually each year after the first, were the key cost driver. Travel costs, also increasing 5% per year, were the second largest variable expense as an investment to advertise and differentiate the product. Advertising spending was also increased recently to boost sales and educate customers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    BUDGET ANALYSIS

    Our firm, which creates cardamom sweet potato chips, has a five-year budget. Fixed
    expenditures such as factory rent, insurance, salesperson and management salary, van driver
    remuneration, and asset depreciation have remained relatively constant throughout time.
    However, because the company was a startup looking to expand, the fixed costs had changed
    slightly. Variable costs have changed during the previous five years as a result of changes in
    production levels, increased spending, inflation, and other market concerns. Variable costs
    such as raw materials, production power, general expenditures, inbound transportation, and so
    on fluctuate during the course of five years based on product demand. The firm's key cost
    driver is raw materials, which have consistently risen by 5% each year (year 2 and on) over
    the years. The second significant variable expense is travel, which has increased by 5% every
    year (year 2 and on) since we believe it advertises the product, attracts consumers, and
    differentiates it from competitors. It is a type of investment for the firm. Furthermore, we
    have increased our advertising budget in recent years in order to encourage sales, educate our
    customers about how our goods help them become more environmentally conscious.

    You might also like