Miles Budget Analysis, Information And Marketing Costs - 550 Words

Miles Budget Analysis, Information And Marketing Costs (Essay Sample) Content: MILES BUDGET ANALYSISNameCourseInstitutional affiliationSubmission dateMyles cycle variance analysisThe variances can be analyzed as followingthere was no variance in fixed costs.variable costs had increase of 420587 $ in value. ( favorable variance)final rework parts had a decrease of $420587(un- favorable)Level 0 variance in the static budget. This might be caused by the non-accommodated inflation rate in predicting the costs of direct materialsLevel 1 variance. There is a difference in the predicted price of materials and the actual price of materials. This might have been caused by the unpredicted inflation rate.Level 2 variance. This could be caused by mathematical and estimation errors by the designers of the budget.Level 3 variance. This was caused by changing economic conditions like weather and factors like political instability that made the economy to go on a depression phase.The owner of the cycling should be concerned about the performance . Variable expe nses tend to change at a relatively slow rate and due to the unpredictable economic conditions it might in future make a loss with wrong prediction. variable expenses should be predicted with current price over and over time.The performance of miles cycling project and budget was successful however the owner ne...