Question

You have been asked by management to prepare a report on why the personnel budget has a large negative variance. What information would you include in your report?

When reporting, why is it necessary to provide evidence to support your statements or conclusions?

Answer 1

To determine the cause’s abnormalities in the staffing budget, the report should include the following data:
- the level of total rejection of the employer-paid costs of the plan;
- the largest deviation the employer-paid costs of the plan to employees;
- the largest cumulative deviation of the structure of personnel costs;
- the biggest deviation in the cost structure for employees.

Evidence justifying the calculation. Let us get accurate information.