Budgeting and profit variance analysis using a financial planning language

This note describes an alternative to typical budgeting and variance analysis exercises. As a term project, students use financial planning software to prepare budgets and then use “what-if” techniques to facilitate profit variance analysis. The method enhances understanding of the relationships amo...

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Bibliographic Details
Published in:Journal of accounting education 1988-10, Vol.6 (2), p.309-323
Main Author: Skantz, Terrance R.
Format: Article
Language:English
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Summary:This note describes an alternative to typical budgeting and variance analysis exercises. As a term project, students use financial planning software to prepare budgets and then use “what-if” techniques to facilitate profit variance analysis. The method enhances understanding of the relationships among budgets, eliminates formula-driven variance analysis, and elucidates the relationship between budgeting and variance analysis.
ISSN:0748-5751
1873-1996
DOI:10.1016/0748-5751(88)90011-5