Finance & AccountingIntermediate 2 to 3 hours

Variance Analysis Report

Explain why actual results differ from budget — controllable vs uncontrollable.

The Scenario

Q1 is over. The marketing team spent R680K against a budget of R600K — 13% over. The CFO wants to know why and whether it will happen again.

The Brief

Write a variance analysis report. Decompose the R80K overspend into specific line items, classify each as controllable or uncontrollable, and recommend corrective actions for Q2.

Deliverables

  • A variance table: Line Item, Budget, Actual, Variance (R and %), Controllable/Uncontrollable
  • An explanation for each significant variance (>5%) with root cause
  • A recommendation for Q2: which spending to cut, which to maintain, and what approvals to tighten

Submission Guidance

Not all overspends are bad. If the team overspent on a campaign that generated 3× ROI, that is a good overspend. Show this judgment.

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