14 of 28 Profile Ltd has a financial year that runs from 1 J

14 of 28 Profile Ltd has a financial year that runs from 1 January to 31 December. The following is an extract from a budget report for September Month Actual Month Budget YTD Actual YTD Budget $18,000 Ful Year Budget $2,000 t Training Which of the following best explains the variance? O They recruited three new staff in September O The training took place earlier in the year $24,000 $24,000 - Less people complete training earlier in the year O The training took place later in the year Assessment Navigator Previous Question Next Question

Solution

From the extract it is evident that there was no expense incurred for the current month of September, hence option 1 is ruled out.

It is September, and still three more months is yet to go, but the YTD Actual is already achieved for the year till December. This has two possible inferences (i) This company has already exhausted the YTD budget and is yet to fall short of funds and may need extra funds in next three months.

Or

(ii) The other and most probable reason is that, the YTD is already achieved for the year and there is no more cost left for the next three months. Hence the costs are already incurred earlier this year. With this explanation, Option 2 is the most likely the answer for the question.

\"The training took place earlier this year\" (this is the answer)

Last two options just cannot be correct, because if there were less people to be trained later this year, then how did the YTD already achieved for the year?

Last option says that training took later this year, which is not yet sure, it is most probably took place earlier this year, Hence option 2 is the right answer.