Flex Budget, Performance Analysis, Stand Costs, and Variances


You are the executive responsible for overseeing the Burberry Women’s Sportswear and Accessories Department. Several events have transpired with the suppliers of raw materials that may adversely impact the supply chain. There has been severe weather in Peru, which is where some of the raw material comes from to manufacture apparel products. Fuel prices have risen in several countries where you obtain material for the synthetic fabrics. Several of the ranches where you purchase material for your leather goods have reduced the size of their herds.

Prepare a report for the CEO on the impact of these events on the cost of raw materials as well as the operational and financial implications for the Woman’s Sportswear and Accessory Department.
Propose the best course of action in light of these events.

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