Analysis and Planning SLP - Essay Example

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Revenues are increasing at a greater rate as compared to expenses, growth rate of revenues is 2.75% and 3.53% in the fiscal year 2010 and 2011comparatively while cost of revenues have increased by 2.12% and 3.22% in the same period which is less than growth rate of…

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Subject: Finance & Accounting
Type: Essay
Level: Masters
Pages: 3 (750 words)
Downloads: 2
Author: dpouros

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1. According to Accounts Learning.com “Static budget has a limited application and is ineffective as a tool for cost control. Flexible budget has a wide application as an effective tool for cost control.” By using this information we will be able to formulate and align our marketing and sales policies to obtain the desired sales level and formulate strategies to control costs and taking timely measures to control any deviations. This information can be used for evaluation of firm’s performance of 2012.

After getting the actual data of 2012 we will evaluate its growth rate and then will compare these actual results with budgeted results of that growth rate. By this comparison we will be able evaluate firms performance regarding sales performance and expenses

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