Budget Analysis Example

• Budgeted $1,000 in advertising funds; actually spent $1,600.

• First thing to do: look at the sales in connection with the increased advertising.

  • If sales over projections equal to or more than the $600,
    then budget still in good shape.

  • If not, find and revise expenses in the budget to make up the deficit:

    • Could spend less on travel?

    • Or could even increase profits by adding a new product or services?