m3 m4 help sheet

Posted by admin on December 27, 2017 in Articles

M4 – Analyse the reasons why costs need to be controlled to budgetM4 and D3 are closely linked but they are different tasks, therefore I have put them on the same helpsheet but actually you could only complete the first page for M4 and then return to D3 at a later date. Introduction In here you need to write that in this document you are going to explain in detail why costs need to be controlled and whether Jet 2 have controlled their costs or not. Variable CostsIn here you need to analyse Jet 2’s variable costs. Use your P&L to help you come up with ideas about why they overspent and what this could be on. Fixed CostsIn here you to analyse Jet 2’s fixed costs. Again use your P&L to help you come up with ideas about why they have overspent and what this could be on. What problems this could cause for Jet 2In here you need to write the problems that overspending could cause them both in the short and long term. This can be an overview and doesn’t have to be in a lot of detail as this is covered in a lot more detail in D3. How could they begin to get out of this situation using their budgets? Use their budgets more effectively, make budgets more realistic (research external factors better etc). ConclusionIn here you need to conclude re: why it is so important for organisations like Jet 2 to control their budgets, reminding me (giving an overview) of what can happen if you don’t. NB: remember to delete my instructions (in italic) before handing in
D3 – Evaluate the problems you have identified in M4 from unmonitored costs and budgets
Variable CostsOne of the problems that jet 2 have made is they have over sent on their variable costs by 3.4 million. This part of this might be on the food that is sold on the planes. Jet 2 should try and sort this out but carefully analysing how much of what gets sold, and buy more of what does get sold out and buy less of what doesn’t so that they don’t need to waste food…