accounting homework is NO JOKE.

Budgets are used throughout the year to benchmark the sales and revenue goals to the actual results. This can literally be done every day by using the Tops Bonus Card data. This budget information is brought to budget meetings where a committee attempts to review it and mark any variances that have occurred and why. This is a significant tool to understand why forecasting was inaccurate in the books. Beyond a daily analysis, budgets are used on a period basis. The books are closed every four weeks and actual results are compared to every major line in the company to determine if there are material variances. From there, the committee tries to understand why the material variance occurred. Were promotions unsuccessful? Was there a significant amount of shoplifting (aka shrink) during the period? Are employees not ringing their friends out? If this is the case, a Loss Prevention Department investigates and comes to a solution. Budgets are used on a continuous basis to benchmark variances and find solutions to prevent them.

Tuesday, March 9, 2010


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