Explaining how variances are related


Consider the following 2008 data for Newark General Hospitals (in millions of dollars

Simple Budget_______Flexible Budget_ Actual Budget__

Revenue______$4.7$____4.8_____$4.5____…

Cost___________4.1___4.1 ___4.2_______

Profit__________0.6____0.7____ 0.3__________

a) Calculate and interpret the two revenue variances

b)Canculate and interpret the two revenue variances.

c)Calculate and interpret the two cost variances

d)How are the variances related?

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Business Economics: Explaining how variances are related
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