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VICAccountingQuick questions

Unit 4: Recording, reporting, budgeting and decision-making

Quick questions on Variance reports and budgetary control (VCE Accounting Unit 4)

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What is net effect on profit?
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Favourable 8,000 (sales) minus unfavourable 6,000 (cost of sales) plus favourable 2,000 (wages) = a net favourable variance of 4,000 dollars, so actual profit beat budget by 4,000 dollars.

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