pls check the attached file for the rest work

Question 8.1 from page 278, Chapter 8:

- Why are planning and budgeting so important to an organization’s success?

 

Question 8.2 from page 278, Chapter 8:

-Briefly describe the planning process. Be sure to include summaries of the strategic, operating, and financial plans.

 

Question 8.3 from page 278, Chapter 8: -Describe the components of a financial plan.

 

Problem 8.1 from page 279, Chapter 8; SEE HELPFUL HINTS BELOW:

 

- Consider the following 2011 data for Newark General Hospital (in millions of dollars):

 

	Static Budget	Flexible Budget	Actual Results
Revenues	$4.7	$4.8	$4.5
Costs	4.1	4.1	4.2
Profits	0.6	0.7	0.3

 

a.      Calculate and interpret the profit variance.

      Profit variance = Actual profit - Static profit

Answer?

Interpret your Profit Variance results?

b. Calculate and interpret the revenue variance.

Revenue Variance = [Actual Revenues – Static Revenues]

Answer?

Interpret your Revenue Variance results?

c.      Calculate and interpret the cost variance.

Cost Variance = [Static Cost – Actual Cost]

Answer?

Interpret your Cost Variance results?

What is the net effect of the revenue and cost variance?

Hint: Take the revenue +cost variance= profit variance

d.       Calculate and interpret the volume and price variances on the revenue side.

-Volume variance = Flexible Revenues - Static Revenues

Volume variance =?

Interpret your Volume Variance results?

-Price variance = Actual revenues-Flexible revenues

Price Variance=?

Interpret your Price Variance results?

e.      Calculate and interpret the volume and management variances on the cost side.

-Volume variance (on cost side) = Static costs - Flexible costs

Volume Variance (on cost side) =?

Interpret your Volume Variance results?

-Management variance = Flexible costs - Actual costs

Management Variance =?

Interpret your Management Variance results?

f.       How are the variances calculated above related?