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A Brief idea of Actual Profit and Budgeted Profit Reconciliation
The Management of a company will want to know the reason for a difference between actual profit and budgeted profit. A reconciliation of budgeted and actual profit can be shown by adding the positive production and sales variances and by deducting the negative variances from the budgeted profit.
A company in business manufactures several products, which requires a number of simultaneous actions to be taken care of in different responsibility centers. An Actual Profit and Budgeted Profit Reconciliation Statement is a representation of the overall summary of Variances arising from different Responsibility Centers.
These statements allow the top management to get a better and broader view at the picture which explains the important causes that gave rise to this said difference between the Actual profit and Budgeted Profit.
However, the whole process of Reconciliation is much more complicated and requires numerical examples to be explained completely. The procedure must be carried out with patience and attention to avoid any mistakes. Students can benefit in this regard by taking Actual Profit and Budgeted Profit Reconciliation Homework Help from myhomeworkhelp.com.
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