HND_财政预算第一次报告.docVIP

PAGE PAGE 2 Content Introduction This report consists of two parts: Part A and Part B. In part A, it is about the analyze of flexible budget and the variance of the Tricol plc. Part B include the investment appraisal of the Tricol plc. There is also include the recommendations for managers and calculation analysis process of this company in this report. Findings Part A Possible reasons for variances Direct Materials Total--￡2400F, this was consist of: Direct Material Usage--￡8000F (the level of significance is 8000/64000=12.50%, because it is higher than the standard significance rate 3% that given in this case, it can be considered that) Practically, the Tricol company use 5600kg material, it is less material than planned which is 8000kg. The possible reasons may be: The Tricol company is high utilization of material in order to reduce the waste of material; so the production efficiency was improved; The workers are more technically, so this can reduce the usage of material; The Tricol company may also use new machinery technology to improve their production efficiency, so it uses less materials than before. Direct Material Price--￡5600A(the level of significance is 5600/64000=8.75%, because it is higher than the standard significance rate 3% that given in this case, it can be considered that ) Practically, the material price is ￡61600/5600kg=￡11 this is more expensive than planned. The possible reasons may be: The Tricol company may has new supplier for their manufacture, this lead to a cooperation relationship with the supplier, so there is loss of discounts; The Tricol company may switching to use more expensive material to produce there products, so the products are more expensive per kg than planned; The Tricol company may use imported material, because the exchange rate and the tariff, this cause the price of the material raise, so the material price is higher than before. Direct Labour Total--￡6400A, this was consist of: Direct Labour Rate--￡3520A(the l