Analysis ....

Expense Analysis

“Budget to Actual” comparison is historically how people gauge a cost centers expenses for a given time period.  IMS refines how fiscal expenses are reviewed by introducing a “Variable Budget”.  A variable budget allocates expenses according to the actual volume completed in a specified time period.  The IMS system calculates the expense for each account based on volume and whether the account is tagged as a fixed or variable account.

The fixed and variable expenses are compared to the budgeted values.  The budgeted totals will change according to the volume actually completed for the month. 

If the cost center is off budget a variance reason “box” appears for the mangers response.  This trigger is set by fiscal management.  Typically, managers want to know more information when the cost center account is $2000 over, or 5% of budgeted expense. 

Example of cost Centers over on Salaries by VP: