The aim of this assignment is to establish the application of theory to investigate the reasons for the difference between a budget and the actual and support the financial element of short-term and long-term decisions.

LEARNING OUTCOMES

Completion of this assessment will enable you to meet the following module learning outcomes:

·      Use techniques to optimally allocate organisational resources and use these efficiently, taking corrective measures when there are disparities between plans and performance

·      Apply financial decision- making techniques in respect of short-term and long-term management decisions

OBJECTIVE

You have just joined a dress manufacturing company as its Finance Director. The CEO wishes to find out as to why the budgeted profit of March 2022 was different from the actual profit of March 2022. He also wants your help in make a short-term decisions in respect of the material required to manufacture 10,000 T shirts.   He has also asked you to help choose the best option for the long-term decision.

Your report must contain the following;

·      Full Variance Analysis

·      Use of Relevant Costing for short-term decision Making

·      Using three Capital Investment Appraisal Techniques as indicated.