Using the data from this week’s Connect Excel Simulation Problem – “Preparing a Performance Budget for Perfect Parties”, analyze and interpret the activity and spending variances between the static and flexible budget. It looks like this party business exceeded their planned operating income, so they must have performed well. Or did they? What did the flexible budget reveal about their spending variances when the budget was restated to the actual activity level?
Compose your analysis in a 2-3 page APA style paper (include references) with your explanations of potential reasons that may have caused these variances and your recommendations on improvements. Include research on competitors in the birthday party business to see how Perfect Parties compares to similar companies. Click the assignment link to compare your work to the rubric before submitting it. Click the same link to submit your assignment.